Technically, the 30-minute chart indicators have reached extreme oversold conditions.
Ether Price Upsides Remain Capped
It seems to be a bearish start to the week for Ether as its price declined sharply against the US dollar. ETH/USD broke a major bullish trend support at $286.00, which is a strong bearish signal in the short term.
There was an impact on ETH/BTC as well that dragged the pair back below 0.050BTC and putting it at risk of more losses in the near term.
The 30-minute chart of ETH/USD shows a strong bearish pressure on Ether. The price after a brief consolidation above the $288.00-$286.00 support, failed and declined below the mentioned support.
At present, the pair is testing the 50 percent Fibonacci retracement level of the last wave from the $200.91 low to $352.70 high near $275.00. The stated $275.00 support is a key technical level. A successful hourly close below $275.00 could ignite further declines in the short term.
The next support lies near the 61.8 percent Fibonacci retracement level of the last wave from the $200.91 low to $352.70 high at $258.80. On the upside, there are two bearish trendlines forming with resistance at $288.00 and $293.000.
Looking at the 2-hour chart of ETH/USD, a crucial bearish trendline with current resistance at $300.00 prevented an upside break recently and pushed the pair down. There was even a 2-hour close below $286.00, giving control to Ether sellers.
Technically, the bearish momentum is strong on ETH/USD according to the 2-hour chart, as technical indicators keep heading lower and Ether’s price extends below its moving averages.
An immediate support is $275.00 followed by $258.80. On the upside, corrections would be limited by the broken supports such as $286.00 and $300.00.