Technically, the hourly chart indicators are extending declines in the bearish territory.
Ether Price under Pressure
A sharp rise in bitcoin price above $6000 has ignited a lot of selling pressure on other major cryptocurrencies, including Ether. The ETH/BTC pair traded to a new monthly low and, more importantly, broke a major support at 0.050BTC.
ETH/BTC’s decline pressured ETH/USD as well. The pair failed to gain momentum above the $308.00 resistance and started a new downside wave. During the downside, there was a break below two static supports - $305.00 and $300.00.
The pair even traded below the 50 percent Fibonacci retracement level of the last wave from the $288.04 low to $316.37 high, which means there are possibilities of more declines in the near term.
On the hourly chart of ETH/USD, there are two bearish trendlines forming with resistance near $300.00 and $311.00. Moreover, the broken horizontal supports at $300.00 and $305.00 are intermediate hurdles for Ether buyers.
On the downside, the next important support sits near $286.00-$284.00. An intermediate short-term support can be around the 76.4 percent Fibonacci retracement level of the last wave from the $288.04 low to $316.37 high.
At present, the pair is flirting with the $298.00 support, but Ether will most likely break it for more losses in the short term. Looking at the 4-hour chart of ETH/USD, there is a bearish formation that could lead the pair towards the last swing low of $288.04.
The overall short-term trend is now bearish as long as Ether’s price is below $310.00. On the downside, the most important support to keep an eye on is $288.00-$286.00.