Technically, the 12-hour chart indicators turned sharply lower from the overbought conditions.
Ether Price is Still Holding Uptrend Support
This past week was mostly bullish for ETH/USD as the pair traded close to the $400.00 level, but failed to test it. The ETH/BTC pair also succeeded in overcoming bearish pressure and traded above 0.080BTC, however, later failed to hold gains.
It seems like Ether closed the week trimming most of its weekly gains. Having said that, the ETH/USD pair is still in an uptrend despite a break below $350.00.
Starting with the 12-hour chart, there was a clear uptrend from the $271.00 low until the pair faced a crucial hurdle just below $400.00. Ether’s price traded as high as $395.41 and then struggled a lot to test $400.00.
Two connecting trendlines with current resistance near $400.00 prevented further gains. As a result, there was a downside reaction and the price traded below the 38.2 percent Fibonacci retracement level of the last leg from the $271.36 low to $395.41 high.
However, the downside move was protected by a crucial bullish trendline support near $330.00 on the same chart. The 50 percent Fibonacci retracement level of the last leg from the $271.36 low to $395.41 high also acted as a strong barrier for sellers.
The pair is currently recovering and the last H12 candle is showing signs of a rejection at $330.00. Dropping down to the 2-hour chart of ETH/USD, the last candle overlapped the previous candle with a low at $329.88.
On the upside, the most important resistance is near $362.00 and the 50 percent Fibonacci retracement level of the last drop from the $395.41 high to $329.88 low.
A successful close above $362.00-365.00 would open the doors for a move towards $380.00 and $390.00. The overall trend is still bullish for Ether until there are no daily closes below $330.00.