Technically, the 4-hour chart indicators have turned lower into the bearish territory.
ETH/USD’s Support Zones
It seems like a short-term top is formed above $860.00 in ETH/USD as the pair started a downside move. It is now below the $700.00 handle and it is currently trading in the bearish zone.
Similarly, the ETH/BTC pair started a downside correction and moved below the 0.0500BTC support. It might continue to correct lower toward the 0.0450BTC support.
Looking at the 4-hour chart of ETH/USD, there was a break below a major bullish trendline with support at $780.00. It opened the doors for more losses and the pair even traded below an important support at $700.00.
The pair tested another crucial support at $600.00, where it found strong bids and recovered. However, the pair has breached the 50 percent Fibonacci retracement level of the last wave from the $429.74 low to $865.00 swing high.
The trendline break at $780.00 was crucial and has pushed the pair in the bearish zone in the short term. Should the pair continue to move down and break the $600.00 support, there can be more declines toward the next key support at $500.00.
Moving on to the hourly chart of ETH/USD, there was a clear break and close below $750.00. Therefore, if the pair corrects higher from the current levels, the stated $750.00 level could act as a strong barrier for buyers.
Overall, Ether is in a major correction phase and ETH/USD might continue to correct lower or consolidate above the $600.00 level in the near term.