Technically, the 6-hour chart indicators corrected sharply lower toward their midlines.
Ether Price Analysis
Yesterday, we saw a solid rise in ETH/USD above the $500.00 resistance. However, the pair faced a strong selling interest near the $515.00 level, resulting in a sharp downward move.
More importantly, there were further losses in ETH/BTC. The pair broke a crucial support near the 0.0650BTC level and moved into a bearish zone. ETH/BTC’s slide increased selling pressures on ETH/USD below the $500.00 support.
Starting with the 6-hour chart of ETH/USD, the pair formed a short-term top at $515.09. It seems like a major connecting resistance trendline prevented gains and pushed the price below the 50 percent Fibonacci retracement level of the last wave from the $466.08 low to $515.09 high.
There was a break below the $480.00 support, but buyers were able to hold losses near $470.00 and a short-term bullish trendline on the same chart. Below this, there is a crucial support near $460.00 and another bullish trendline.
An intermediate support sits at $465.00 and the 50 percent Fibonacci retracement level from $418.40 to $515.09. A successful break below $465.00 and $460.00 may perhaps push the price back into a bearish zone.
Moving down to the 2-hour chart, the pair broke a key bullish trendline with support at $480.00. Later, it found bids near $470.00 and is currently recovering toward the $480.00 resistance (the previous support). Above this, the price is likely to revisit the $500.00 resistance zone.
To sum up, Ether’s sharp decline versus bitcoin increased selling pressure on ETH/USD. Going forward, the pair must stay above the $460.00 support. Otherwise, there is a risk of sliding back to $420.00.