Technically, the 2-hour chart indicators are recovering from the oversold readings.
Ether Price Testing Important Support
ETH/USD failed to hold gains above the $320.00 level and trimmed almost all its monthly gains after trading as high as $329.23.
The pair made a sharp U-turn and started a decline from the $329.23 swing high. First, there was a dip below the $310.00 pivot level, which opened the doors for more losses. Second, buyers failed to hold a major support area at $304.00.
Finally, there was a break below the 61.8 percent Fibonacci retracement level of the last wave from the $287.67 low to $329.23 high. It pushed the price back toward the last swing low of $287.67.
The price traded as low as $289.73 and when looking at the 2-hour chart of ETH/USD, it seems like the $290.00 support region is holding the current decline. The pair is currently correcting higher, but the same broken support at $304.00 is once again acting as a resistance.
Above $304.00, there is a bearish trendline forming with resistance at $312.00. Moving on to the 6-hour chart of ETH/USD, the pair is clearly finding strong buying interest near $290.00 and a bullish trendline with current support at $296.00.
To the topside, the $311.00 resistance will most likely act as a crucial barrier for the current recovery. A successful close above $311.00 would negate the current short-term bearish bias.
On the downside, the $290.00 support holds a lot of importance in the short term. Below $290.00, Ether’s price could test the next major support near $280.00. Overall, there can be ranging moves above $290.00 before ETH/USD attempts an upside move toward $311.00.