Technically, the 4-hour chart indicators are still placed comfortably in the bullish territory.
Can Ether Price Gain Momentum?
A fresh round of selling pushed the ETH/USD pair down from $303.00 to $280.00. The decline was mostly driven by a Korean regulators’ statement regarding a ban of domestic ICOs.
Bitcoin price also declined but later managed to recover. On the other hand, the ETH/BTC pair faced a lot of selling pressure and traded towards the 0.070BTC support.
The hourly chart of ETH/USD is pointing to a sharp decline from the $303.00 level. The pair failed to hold the $298.00, $295.00, and $290.00 support levels during the slide.
A low was formed at $279.89 from where the price started correcting higher. It has already breached the 23.6 percent Fibonacci retracement level of the recent decline from the $312.40 high to $279.89 low.
However, there is a major bearish trendline forming with resistance near $300.00. The mentioned $300.00 resistance is once again important since it is the 61.8 percent Fibonacci retracement level of the recent decline from the $312.40 high to $279.89 low.
ETH/USD has to overcome the $300.00 sell wall to move back in the bullish zone. On the downside, an initial hurdle for sellers is around a horizontal support and trendline at $288.00.
Below $288.00, the pair would target the recent low near $280.00. Looking at the 4-hour chart of ETH/USD, there is a connecting bullish trendline with support at $275.00.
The current price action is showing signs of recovery above $290.00, but Ether has to break the $300.00 resistance to avoid short-term downsides. On the downside, supports are seen at $288.00, $280.00, and $275.00.