Technically, the 2-hour chart indicators are showing recovery signs in the bearish territory.
Ether Price Analysis
It seems like ETH/USD is forming a strong support base near $400.00. The pair moved higher recently and traded above the $405.00 level to start a short-term recovery.
Conversely, ETH/BTC failed to test the 0.0600BTC resistance and declined. The pair is currently trading below 0.0580BTC and it could test the 0.0570BTC support.
Looking at the 2-hour chart of ETH/USD, the last three candles are bullish and are indicating a positive recovery. However, the pair is currently testing a crucial bearish trendline with resistance near $409.00-410.00.
Therefore, a proper 2-hour close above the trendline and $410.00 will most likely set the pace for more gains. The next important resistance awaits around $420.00 and the 23.6 percent Fibonacci retracement level of the drop from $484.54 high to $397.79 low at $418.00.
The 6-hour chart indicates that Ether’s price was rejected more than three times near $400.00. Thus, ETH/USD may possibly climb higher and trade toward the next hurdle at $425.00 and a bearish trendline. A break above this obstacle might push the price toward the 38.2 percent Fibonacci retracement level of the drop near $430.00.
On the flip side, should Ether fail to settle above the $410.00 resistance, it may well slide back to $405.00 and $402.00, below which, the price is likely to retest $400.00.
In the short term, the risk is skewed to the upside, as Ether is pressuring a key resistance and technical indicators have accelerated gains. However, it won’t be easy for buyers to gain strength above the $420.00 resistance.