Technically, the daily chart indicators are placed heavily in the bearish territory.
Ether Price Weekly Analysis
This past week, there was a sharp increase in selling pressure on Ether. ETH/USD declined below the $450.00 and $420.00 support levels and even spiked below the $400.00 handle before starting a consolidation phase.
Similarly, there were heavy losses in ETH/BTC. The pair traded a few points below the 0.0550BTC support before recovering above 0.0580BTC. It may perhaps trade in a range below 0.0600BTC before making the next move.
Let’s look at the daily chart of ETH/USD to understand the recent drop. The price failed to break an important resistance near $480.00 and started a downward move. It declined and broke a crucial bullish trendline with support at $460.00.
It seems like Ether’s price failed near a significant bearish trendline with current resistance at $450.00. During the decline, the price settled below $420.00 and traded to a new multi-month low at $397.79.
The price is currently consolidating losses above $400.00 and it could correct a few points in the short term. The 2-hour chart indicates that there are many resistances and bearish trendlines positioned below $420.00.
Therefore, a successful 2-hour close above the $420.00 resistance is required to start a short-term bullish wave. In the mentioned scenario, the price may possibly correct toward the $450.00 resistance (bearish trendline on the daily chart).
On the flip side, should Ether fail to break the $420.00 resistance, the price might slide further below the $400.00 level. To sum up, ETH/USD is trading near an important range between $400.00-420.00, and the next move would depend on whether buyers succeed in pushing the price above $420.00.