Technically, the 2-hour chart indicators are consolidating in the bearish territory.
Ether Price Analysis
Yesterday, we discussed more losses in ETH/USD toward the $400.00 support. The pair dipped further and formed a new monthly low, but declines were protected by the $420.00 support zone.
Similarly, ETH/BTC found a strong buying interest above the 0.0700BTC support. The pair is currently correcting higher and it may perhaps move above the 0.0720BTC resistance to test 0.0740BTC.
Let’s look at the 2-hour chart of ETH/USD to understand the recent decline and the importance of the $420.00 support. The pair dipped from the $440.00 resistance and traded below the last low of $421.80.
However, Ether buyers successfully prevented losses below $420.00, and the price formed a new low at $420.24 before bouncing back more than $20.00 with a few bullish signs. It traded above the $440.00 resistance and formed an intraday high of $446.53.
More importantly, it seems there is a double bottom pattern forming near the $420.00 support. To confirm the pattern, Ether’s price must break the $450.00 resistance and a bearish trendline on the same chart at $460.00.
A successful daily close above $460.00 will most likely confirm a short-term bottom. In the mentioned case, the price may possibly accelerate gains toward the $500.00 and $520.00 resistance levels.
However, should the price break the double bottom pattern support at $420.00, it could continue toward $400.00. Moving down to the 30-minute chart of ETH/USD, there is a connecting bullish trendline formed with support at $432.00.
An initial resistance awaits near $445.00, above which, Ether’s price might attempt to clear the $450.00 and $460.00 barriers.