Technically, the 4-hour chart indicators are moving lower in the bullish territory.
Ether’s Price to Correct Further?
Yesterday, we discussed the $750.00 resistance. ETH/USD failed to move above the stated $750.00 resistance and started a downside correction.
On the flip side, ETH/BTC is holding the 0.0500BTC support. The pair has to stay above the mentioned level to gain traction toward the 0.0550BTC level.
Looking at the hourly chart of ETH/USD, there are a few short-term bearish signs. First, there was a break below a key ascending channel with support at $722.00. Second, the last 4-5 candles point to increase in selling pressure. Lastly, the pair has moved below the 50 percent Fibonacci retracement level of the last wave from the $670.94 low to $754.85 high.
The pair is currently below the $700.00 level and remains at a risk of further downsides toward the next major support at $670.00-675.00.
The 4-hour chart of ETH/USD suggests that the pair failed to break an important bearish trendline with current resistance at $750.00. On the downside, there is a connecting bullish trendline at $650.00. However, there is a key support at $600.00 that will most likely prevent further declines in the near term.
It seems like Ether’s price would continue to trade in a range of $650.00 and $750.00 in the short term. A successful 4-hour close on either side could open the doors for the next major wave either above $800.00 or below $600.00.
In the short term, ETH/USD could bounce back after testing the $670.00-675.00 support region.