Technically, the 12-hour chart indicators retreated from their midlines in the bullish territory.
ETH/USD’s Upsides Remain Capped
The past week was mostly bullish as ETH/USD moved above the $700.00 and $800.00 levels. However, it failed to hold gains above the $800.00 level and started a downside move.
On the other hand, ETH/BTC started a decent recovery and is currently placed well above the 0.0450BTC and 0.0400BTC support levels. On the upside, the 0.0500BTC and 0.0580BTC levels are important resistance levels.
A downside wave was initiated from the $867.75 swing high and ETH/USD moved down by more than $300.00. During the downside move, there was a break below the $700.00 support and a bullish trendline at $760.00 on the 12-hour chart.
The pair traded below the $600.00 handle and traded toward $500.00. However, the decline was protected by a crucial support at $500.00 and a bullish trendline on the same chart at $510.00.
A recovery wave was initiated and the pair moved above the 50 percent Fibonacci retracement level of the last decline from the $867.75 high to $487.64 low. However, Ether buyers are struggling to gain momentum above $700.00.
Therefore, it remains at a risk of more declines back toward $620.00 in the near term. Should there be a close above the 61.8 percent Fibonacci retracement level of the last decline from the $867.75 high to $487.64 low, the price could move back in the bullish zone.
In the short term, there can be more downsides toward $600.00 and $620.00. However, Ether’s price is still in the bullish zone, but it has to move above $700.00 and $720.00 to regain traction. On the downside, the $500.00 level is a key support in the medium term.