Technically, the daily chart indicators are recovering higher in the bearish territory.
Ether Price Analysis
This past week, Ether’s price declined heavily, settled below the $450.00 support level, and traded toward the $400.00 support. A low was formed at $405.29 before an upward correction was initiated.
ETH/BTC also faced a lot of selling interest, resulting in a weekly close below the 0.0750BTC support. The pair tested the 0.0700BTC support and is currently correcting higher toward the 0.0720BTC resistance.
Let’s start with the daily chart of ETH/USD to understand the last decline and the recent upward correction. The chart clearly indicates a bearish pattern inside a significant declining channel with current resistance near $490.00.
There were a few correction patterns formed, which faced hurdles near the channel’s bearish trendline. The price was rejected many times and declined to form new lows. The recent low was $405.29 and the price is again forming a similar correction pattern.
Therefore, there are two scenarios possible in the upcoming days. First, the price climbs further higher, tests the bearish trendline with current resistance at $490.00, faces rejection, and finally resumes its downward move.
The second one is a bullish scenario in which the price breaks the all-important bearish trendline and clears the $500.00 barrier to start a solid bullish wave. Overall, the next move in Ether depends on whether it succeeds in surpassing the $490.00-500.00 resistance zone.
Dropping down to the 2-hour chart of ETH/USD, the pair is trading nicely above the $440.00 support. It is currently consolidating gains and is preparing for the next move. A break above the $460.00 resistance could push the price toward $475.00 and $490.00.
On the flip side, a break below $440.00 may push the price back toward the $420.00 support, below which there is a risk of an extension to $400.00.