Technically, the daily chart indicators have reached their midlines and gaining bearish momentum.
Ether Price Recovery Remains Capped
There was an increase in bearish sentiment on ETH/USD as the pair failed to hold an important support area near $305.00-300.00. Similarly, the ETH/BTC pair remained well offered and just managed to hold the 0.070BTC support.
Let’s start with the daily chart of ETH/USD, as it suggests an important technical structure. The chart shows how the pair failed to break a connecting trendline with resistance at $395.00-400.00 and started a sharp correction.
During the downside move, the pair breached a bullish trendline at $345.00 and formed a new monthly low at $275.82. Currently, Ether is struggling to hold another important bullish trendline with current support at $305.00.
The mentioned trendline support at $305.00 holds a lot of significance. A successful daily close below $305.00 would set the tone for further declines in ETH/USD towards the 50 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high around $265.00.
Below $265.00, the 61.8 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high at $233.00 could act as a key support zone in the near term.
Moving on to the 2-hour chart of ETH/USD, the pair attempted a minor-recovery from a sharp decline to $275.82, but further upside lacks momentum.
There is a declining channel forming with current resistance at $310.00. Should there be a break and close above $310.00, the current bearish bias would start fading.
Overall, a daily closing within the $305.00-300.00 range could be significant. Bearish extension below $300.00 would risk a retest of $275.82, and then again at $265.00. On the other hand, an immediate up barrier could emerge at $310.00 followed by $325.00 and $330.00.