Technically, the 6-hour chart indicators are moving lower in the bullish territory.
Ether Price to Bounce Back Soon
Yesterday, we discussed an important support area near $472.00-$470.00 in ETH/USD. The pair failed to stay above $470.00 and declined toward $460.00.
Looking at ETH/BTC, there was no recovery and the pair extended declines below 0.0480BTC. The next major support on the downside is close to 0.0450BTC.
The 2-hour chart of ETH/USD suggests that the pair is struggling to move above $490.00 to test $500.00. It started a downside correction and settled below a key bullish trendline with support around $470.00. It opened the doors for an extended correction and the pair traded toward $460.00.
It seems like the 23.6 Fibonacci retracement level of the last wave from the $357.36 low to $490.34 high is acting as support near $460.00 and is preventing further declines.
Below $460.00, the next major support is at $450.00, which is the last swing low followed by a crucial support at $425.00. Looking at the 6-hour chart of ETH/USD, the pair seems to be consolidating recent gains above the $450.00 level.
It is very unlikely that the pair would break $450.00 and $425.00 before making another upside attempt. Should there be a break below $425.00, Ether’s price could test a major bullish trendline with support at $410.00 on the same chart.
To sum up, the current price action is mostly corrective in nature and once a support base is formed, ETH/USD will most likely bounce back above $475.00 in the near term.