Technically, the 12-hour chart indicators are accelerating lower in the bearish territory.
Ether Price Analysis
This week, we discussed a possible upward move in ETH/USD toward the $300.00 resistance. However, it seems like Ether buyers struggled to clear the $290.00 resistance, resulting in a sharp downward move below $280.00 and $270.00.
More importantly, there were further losses in ETH/BTC below the 0.0400BTC level. The pair surpassed the 0.0380TBTC support, opening the gates for a test of 0.0350BTC.
Starting with the 2-hour chart of ETH/USD, the pair was following a declining channel with resistance at $290.00. Buyers failed to gain traction above $290.00, igniting a sharp bearish move below the channel support at $278.00.
Ether’s price declined heavily and broke important supports like $272.00, $270.00, and $260.00. It traded close to the last swing low and formed a new weekly low at $251.93. The price is currently recovering, but the previous support at $270.00 is likely to act as a strong resistance.
Additionally, the 50 percent Fibonacci retracement level of the recent drop from the $302.26 high to $251.93 low near $276.00 could also stop upsides in Ether.
Moving up to the 12-hour chart, the pair broke a significant triangle pattern with support at $275.00. Should Ether sellers succeed in pushing the price below the $250.00 support, it may result in heavy slides toward the $220.00 and $200.00 levels.
To sum up, the recent drop has changed the trend and reduced chances of a break above $300.00 in the near term. The next move in ETH/USD now depends on whether it stays above the $250.00 support.