Technically, the 2-hour chart indicators are recovering from the extreme oversold conditions.
Ether Price Analysis
ETH/USD failed to hold the June 30 low at $405.29 and traded below the $400.00 handle. The pair hit a new multi-month low at $397.79 before starting a rebound.
Similarly, ETH/BTC traded to a new weekly low and later recovered above 0.0550BTC. The pair is currently showing positive signs and it could continue to trade higher toward the 0.0570BTC level.
Starting with the 30-minute chart of ETH/USD, the pair formed a decent support at $397.79. Later, the price began climbing again and broke the $400.00 and $405.00 resistance levels. Ether buyers gained traction, resulting in a push above the $409.00 resistance and two bearish trendlines on the same chart.
The price also broke the 50 percent Fibonacci retracement level of the recent decline from the $426.65 high to $397.79 low. It seems like the price could keep rising toward the next resistance at $415.00.
However, the 2-hour chart indicates that there is a strong resistance formed near $415.00 and two bearish trendlines. Should Ether’s price surpass this, the next resistance is near the 76.4 percent Fibonacci retracement level of the recent decline at $420.0.
An immediate support is $409.00 (the previous resistance). The most important support is $400.00, and a daily close above this is needed for Ether to recover further. If not, the price may possibly break the recent low at $397.79 and extend declines.
The short-term price action is positive, but ETH/USD must clear the $415.00 and $420.00 resistances to solidify a larger recovery.