Technically, the 4-hour chart indicators turned south and are declining in the bearish territory.
Ether Price Upsides Remain Capped
Yesterday, we discussed how a break of the $275.00 support of ETH/USD would indicate that the positive bias that started from $200.91 has ended. The pair failed to break the $295.00-$300.00 resistance and started a downside move.
There was a break in the range support at $275.00, opening the doors for a decline towards $250.00. During the downside move, the pair even breached the $265.00 support and traded as low as $252.03.
The pair traded close to the 50 percent Fibonacci retracement level (250.64) of the last upside move from the $200.91 low to $300.37 high and found support. Looking at the hourly chart of ETH/USD, a recovery wave was then initiated from the $252.03 low.
Buyers managed to take Ether’s price above the 23.6 percent Fibonacci retracement level of the last decline from the $293.52 high to $252.03 low. However, the upside move was protected by the $270.00 level and the 38.2 percent Fibonacci retracement level of the same wave.
The price traded lower once again and broke a contracting triangle pattern with support at $265.00 on the same chart. The recent downside break suggests that the price could retest the last low of $252.03.
If buyers fail to defend the $252.00-$250.00 support, there would be an extension towards the 61.8 percent Fibonacci retracement level of the last upside move from the $200.91 low to $300.37 high at $238.00.
Looking at 4-hour chart of ETH/USD, there is a key bearish trendline at $285.00 which acted as a hurdle and caused a downside break of the $275.00 support.
On the upside, any recovery attempts by Ether buyers might continue to confront fresh offers near the $270.00-275.00 region, which if cleared, would trigger short-covering towards $285.00. On the downside, the next major support after $250.00 lies at $238.00.