Technically, the hourly chart indicators are pointing a recovery from the oversold readings.
Ether Price Upside Hurdles
Yesterday, we saw a major decline in Ether price versus both bitcoin and the US dollar, and discussed the importance of a daily close below $200.00 in ETH/USD.
The pair managed to avoid a daily close below $200.00, but the risk of more losses in the near term is far from over.
ETH/USD is flirting with the $200.00 handle and consolidating losses above $180.00. Looking at the hourly chart, the pair recently succeeded in breaking two bearish trendlines at $190.00, which is an early indicator of correction in the short term.
The price even traded above the 23.6 percent Fibonacci retracement level of the last drop from the $240.00 high to $174.08 low. It has opened the doors for more upsides today. However, there are many hurdles on the topside which can stop recovery.
To start with, the $210.00 level is an immediate resistance on the hourly chart. Above $210.00, there is a cluster of bearish trendlines on the 4-hour chart starting from $212.00 up to $240.00. These trendlines are crucial and may prevent buyers from taking control in the short term.
The most important resistance sits at $250.00 (support turned resistance). We can consider it as a pivot for the current bearish trend.
The downside, however, remains supported by yesterday’s low near $175.00. Once again, today’s close is crucial. The pair must close above $200.00 and extend gains to decrease bearish pressures.
In the short term, we can see ranging moves between $190.00-215.00 before the pair attempts a break above $220.00. On the other hand, a failure to hold $180.00 might lead to heavy declines in ETH/USD.