Technically, the 2-hour chart indicators have recovered well from the oversold region.
Ether Price Formed a Short-term Bottom?
Yesterday, we saw the start of a new downside wave in ETH/USD from the $352.70 high and were looking for a test of $286.00. The pair did trade toward $286.00, found strong bids, and recovered sharply.
On the other hand, there was no sign of a recovery in ETH/BTC as the pair extended its decline below 0.055BTC towards 0.052BTC.
Starting with the 2-hour chart of ETH/USD, there seems to be a perfect failure from the $288.00 region. The pair formed an overlapping bullish candle at $288.04 and bounced back sharply.
It is a strong rejection sign that the pair succeeded in breaking a bearish trendline on the same chart at $305.00. There was even a close above the 23.6 percent Fibonacci retracement level of the last decline from the $352.70 high to $288.04 low.
The pair traded close to the previous support (now resistance) at $318.00-$320.00. Buyers struggled to push the price above $318.00 and the 50 percent Fibonacci retracement level of the last decline from the $352.70 high to $288.04 low.
At present, the price is correcting lower toward the $302.00-$300.00 support. Looking at the 12-hour chart of ETH/USD, there is an expanding triangle forming with current support at $290.00.
The recent bounce in Ether’s price was from the triangle support area near $286.00-$288.00. A bullish hammer candle is formed at $288.04, which means there can be further upsides in the near term.
The short-term support in ETH/USD continues to be the $300.00 level, as a break below it would expose $286.00. To the upside, the key resistance is near $320.00, and steady gains beyond this last session are required to see Ether’s price shrugging off the recent decline.