Technically, the 2-hour chart indicators have reached extreme oversold levels in the bearish territory.
Ether Price Eyeing $286?
There was an increase in selling pressure on ETH/USD, which resulted in further declines below $320.00. The pair failed to hold the stated $320.00 support and traded lower by more than 7 percent.
Looking at the 2-hour chart of ETH/USD, there are back-to-back bearish candles from the $352.70 high. It seems like the pair is even struggling to hold the $300.00 psychological level.
On the upside, there is a major bearish trendline forming with resistance at $306.00 on the same chart. Should there be a break above $306.00, the price could trade toward $320.00. The stated $320.00 level was a support earlier and now it would prevent upsides.
Moving on to the 6-hour chart of ETH/USD, there are a few important points to consider. First, the pair has breached the last bullish trend support at $320.00. Second, there was a break below the $318.00 pivot region, signaling a new bearish wave. Finally, the next major support sits at $286.00-$285.00.
The pair is currently well below the 61.8 percent Fibonacci retracement level of the last bullish wave from the $286.49 low to $352.70 high. Therefore, the price will most likely retest the last swing low of $286.00.
The mentioned $286.00 support holds the key for the next wave in Ether’s price. A close below $286.00 would take the price toward the 1.236 extension of the last bullish wave from the $286.49 low to $352.70 high at $270.00.
Alternatively, if buyers succeed in preventing declines below $286.00, ETH/USD could bounce back toward $320.00, with gains beyond this last session required to confirm additional upsides.