Technically, the 2-hour chart indicators moved in the bearish territory once again.
ETH/USD May See Further Declines
Yesterday, we discussed how ETH/BTC’s decline is impacting the market sentiment and pushed ETH/USD toward a crucial breakout.
There was a further increase in the bearish pressure on ETH/BTC since bitcoin price traded close to the $12,000 level. The pair traded sharply lower and broke the 0.0380BTC and 0.0350BTC support levels.
As anticipated, ETH/USD also declined and broke an important bullish trendline at $454.00 on the 2-hour chart. It is not a good sign and could ignite further declines in the near term toward $420.00.
On the upside, there is a bearish trendline forming with current resistance at $454.00. Therefore, the previous support around $450.00-455.00 will most likely act as a resistance and prevent gains.
The current price action is negative, the next support being near the 50 percent Fibonacci retracement level of the last wave from the $394.11 low to $481.24 high at $437.00. Below the mentioned $437.00, the next support is close to $420.00.
Moving down to the 30-minute chart of ETH/USD, it seems like the pair is following a declining channel with current resistance at $445.00-446.00. A successful close above $446.00 is required for a recovery toward $454.00.
On the downside, the channel support is near $437.00. Clearly, the mentioned $437.00 support is significant and could protect further declines.
Having said that, ETH/BTC’s decline must stop to avoid further losses in ETH/USD. A recovery above $446.00 should take off some of the bearish pressure on Ether, but gains beyond $454.00 are required to confirm a short-term bottom. Below $437.00, on the other hand, the risk turns toward the next support at $420.00.