Technically, the hourly chart indicators have reached extreme oversold readings.
Ether Price Rebound Possible?
Ether has once again met selling interest and declined against the US dollar and bitcoin. ETH/USD has been trading substantially lower in recent days, extending its losing streak earlier today to $250.00, its lowest this week.
The hourly chart shows that the price keeps retreating towards a bearish 10 SMA, while technical indicators retreat within negative territory, supporting further declines on a break below $250.00.
There are a few important points to note when looking at the hourly chart:
- The pair is following a couple of key bearish trend lines with resistance levels at $280.00 and $290.00.
- The previous major support at $290.00 may now act as a resistance.
- Recoveries towards $280.00 or $290.00 could face a lot of selling pressure.
On the downside, the recent low of $250.66 might continue to hold losses. However, it won’t be easy for buyers to defend $250.00 if Ether’s price fails to move back above $290.00.
An initial resistance is near $280.00 which coincides with the 38.2 percent Fibonacci retracement level of the last drop from $320.00 to $250.00.
The 4 hours chart of ETH/USD also points the significance of the $290.00 resistance. It was a crucial support and is now acting as a hurdle for a recovery.
Should there be a daily close below $290.00, losses might extend at a greater pace. It seems like Ether’s price is facing a tough time, calling for a short-term bearish bias.
Below $250.00, we can see a test of $220.00 which is another important support zone for ETH/USD. On the other hand, the pair can extend its advance up to $320.00 on a break of $290.00, although profit taking around $320.00 will likely prevent the pair from advancing further.