Technically, the 2-hour chart indicators are moving lower in the bearish territory.
Ether Price Analysis
After trading as low as $305.38, ETH/USD started a short-term correction and moved above the $315.00 and $325.00 levels. The pair traded as high as $327.39, started a fresh downward move, and fell below $300.00.
More importantly, ETH/BTC failed to recover and dropped below the significant support at 0.0500BTC. The pair may well continue to decline if buyers fail to push the price above 0.0500BTC and 0.0520BTC.
Looking at the 30-minute chart of ETH/USD, the pair topped at $327.39 and started a fresh downward move. It broke the $310.00 support and the 76.4 percent Fibonacci retracement level of the recent wave from the $305.38 low to $327.39 high.
Moreover, the pair broke a declining channel with support near $312.00 on the same chart. A new yearly low was formed below $300.00 and the price is currently consolidating around $290.00.
Should Ether’s price correct higher, the broken support at $312.00 and $320.00 are likely to prevent gains. The next important hurdle for Ether buyers is near a key bearish trendline with resistance near $324.00 on the 2-hour chart of ETH/USD.
Finally, a close above the $325.00-330.00 resistance zone will most likely take Ether’s price toward the all-important $350.00 resistance (the previous support).
The 2-hour chart suggests that ETH/USD is trading well below a sharply bearish 50 SMA, while technical indicators are turning lower in negative territory, indicating that buying interest is quite limited. Therefore, a daily close below the $300.00 support should lead Ether to $286.00 or $275.00.