ETH/USD Forecast: Gaining Downward Strength
|Ether fell hard during the past few hours, testing the $305.00 support against the US Dollar.|
|There is a major bearish trendline forming with resistance near $348.00 on the 2-hour chart of ETH/USD.|
|ETH/BTC also declined sharply and traded towards the 0.070BTC level.|
Technically, the 30-minute chart indicators are recovering from the extreme oversold conditions.
Can Ether Price Bounce Back?
It seems like the ETH/USD pair carved a short-term top near $395.41 and is currently gaining downward strength. Ether was down sharply during the past few hours after China banned companies from raising funds through ICOs.
Many other major cryptocurrencies including Bitcoin faced a lot of selling pressure. The ETH/BTC pair also declined and moved towards the next important support of 0.070BTC.
The 2-hour chart of ETH/USD clearly highlights how a top was formed near $395.41. The pair is down by more than 20% from the mentioned high, recently trading near a crucial monthly pivot of $305.00.
Initially, there was a break below two bullish trendlines near $380.00. It cleared the way for a downside acceleration, causing the pair to fall sharply by more than $50.00.
There was a recovery attempt from the $330.00 support, but buyers failed to break a bearish trendline on the same chart at $370.00. As a result, the pair resumed its downside move and cleared a connecting bullish trendline at $345.00.
All these are bearish signs point to a short-term trend change for Ether. On the upside, the bearish trendline with current resistance at $348.00 is now a crucial hurdle.
Moving on to the 30-minute chart of ETH/USD, the pair is attempting a recovery after trading as low as $303.52. An initial resistance waits around the 23.6 percent Fibonacci retracement level of the last decline from the $370.37 high to $303.52 low.
Further to the upside, the $340.00 level (support turned resistance) could act as a sell zone in the near term. On the downside, the $305.00-300.00 support is very important. A close below $300.00 would open the doors for further declines in Ether’s price.