Technically, the 2-hour chart indicators are still some distance away from the oversold levels.
ETH/USD Remains under Pressure
There was no respite for Ether buyers as the price fell further versus the US dollar and bitcoin. ETH/BTC was the worst performer as it moved down by around 25 percent and broke a major support at 0.030BTC.
Bitcoin price extended its rally toward $16,500, which pressured both key Ether pairs – ETH/USD and ETH/BTC. Looking at the 30-minunte chart of ETH/USD, there is a clear downtrend visible.
The pair is following a declining channel with resistance near $428.00 and every upside correction failed to gain traction. The recent decline was such that the price failed to hold the 50 percent Fibonacci retracement level of the last upside leg from the $394.11 low to $481.24 high at $437.00.
More importantly, there was a break below the $425.00-420.00 support area. It opened the doors for more slides and the price traded close to the $405.00 support. A low was formed at $406.94 before the price started an upside correction.
At the outset, Ether’s price is trading near the $415.00-420.00 range. A successful close above $430.00 is required for cooling of the current bearish pressure. Moving up to the 2-hour chart of ETH/USD, there are two bearish trendlines forming with resistance at $428.00 and $440.00.
Overall, Ether retains its bearish stance short-term, as in the 2-hour chart, the price is below key support levels and the 20 SMA. If ETH/USD fails to recover above $430.00, the risk remains toward the downside; $405.00 is currently the immediate support ahead of the $394.11 low.