Technically, the indicators on the hourly chart have resumed their declines after correcting oversold conditions.
Ether Price to Test $7.50?
This past week was not that good for Ether price, as it faced a lot of hurdles against the USD and BTC. The ETH/USD pair kept facing offers near $7.90-$8.00, and failed to post a substantial recovery.
The recent recovery stalled just above $7.90 where sellers managed to defend further upsides. There were 3-4 attempts to pierce the stated resistance, but Ether price could not gain momentum.
As a result, there was a downside reaction. The ETH/USD pair fell below the 23.6% Fibonacci retracement level of the last wave from the $7.49 low to $7.93 high. The most important point to note is that the pair cleared a short-term bullish trend line formed on the hourly chart.
The pair is currently testing the 50% Fibonacci retracement level of the last wave from the $7.49 low to $7.93 high at around $7.65 and finding bids. However, the recent break looks crucial, and may ignite more declines in ETH/USD.
Looking at the last three candles, there is a bearish formation, having a potential for a push towards $7.50. As long as the pair keeps struggling below $7.90, there cannot be a proper recovery.
The stated level is very important, and the 4-hours chart also suggests the same. It was a critical support earlier and prevented downsides. Now, it is acting as a resistance and stopping upsides.
The current pattern on the 4-hours chart looks like a consolidation ahead of the next wave in ETH/USD.