Technically, the 6-hour chart indicators recently moved in the bearish territory.
Ether Price Approaching Key Support
There was no upside break in ETH/USD as the pair failed to surpass the $350.00 resistance area. A fresh downside wave was initiated with a break of the $340.00 support.
Looking at the 2-hour chart of ETH/USD, the pair seems to be in the third wave from the $347.00 swing high. It failed on many occasions to break the $348.00-$350.00 resistance and started a short-term downtrend.
There was a break below a bullish trendline with support at $335.00 on the same chart. Sellers even succeeded in clearing the 50 percent Fibonacci retracement level of the last leg from the $296.82 low to $352.70 high.
It has opened the doors for more declines in the near term toward the next major support at $320.00. On the upside, there is a bearish trendline forming with current resistance at $330.00.
Should there be a break above $330.00, the price could attempt a rally toward the $350.00 resistance. Moving on to the 6-hour chart of ETH/USD, there is a downtrend forming with four back-to-back bearish candles.
However, there is a crucial bullish trendline forming with support at $320.00 on the same chart, which would act as an important hurdle for a break toward $300.00.
Technical readings in the 6-hour chart of ETH/USD lean the scale toward the downside as the pair slides further below its 50 SMA. The bearish scenario sees a final push in Ether’s price toward significant near-term support at $320.00, the break of which would signal the continuation of a larger downtrend from $352.70 (the October 16 high).
Overall, the $320.00-$318.00 support holds a lot of importance for the current bullish trend.