Technically, the daily chart indicators turned bearish and are signaling a bearish trend.
Ether Price Declines To Accelerate
The past two days turned out to be very bearish for Ether as it struggled to hold a few important support levels against the US dollar and bitcoin.
The ETH/USD pair is now at a major risk of further declines below $275.00. Looking at the daily chart, the pair has breached a crucial bullish trendline with support at $310.00 and is currently consolidating losses.
At the outset, the pair is holding a major pivot region near $275.00-$265.00. The $265.00 support is very significant since it is the 50 percent Fibonacci retracement level of the last leg from the $133.79 low to $395.41 high.
If there is a daily close below the stated $265.00 support, the price would accelerate its decline towards the next support below $250.00. However, in the mentioned scenario, the price is more likely to hold $240.00.
The next major support is the 61.8 percent Fibonacci retracement level of the last leg from the $133.79 low to $395.41 high near $233.00.
Dropping down to the 4-hour chart of ETH/USD, there are many bearish signals including a break of a contracting triangle pattern at $280.00. It has set a negative tone and the pair is now at a major risk of further declines, possibly below $300.00.
That said, Ether’s price has to move above $310.00 by end of today or tomorrow to avert any major declines. The short term trend is now bearish with an immediate support pegged near $265.00, below which ETH/USD could drop back to multi-week lows support near the $233.00 level.