February 22, 2018 4:44 PM
Ether is under bearish pressure versus the US dollar and bitcoin. ETH/USD is trading below $850.00 and it must stay above the $780.00-800.00 support to avoid continued losses.
Ether’s price declined further and traded below the $800.00 level against the US dollar.
There is a crucial bearish trendline forming with resistance at $850.00 on the 2-hour chart of ETH/USD.
ETH/BTC is consolidating losses around the 0.0800BTC pivot level.
Technically, the 2-hour chart indicators are pointing towards neutral momentum.
What’s Next for ETH/USD?
Yesterday, we saw a key support break in ETH/USD as the pair declined below $900.00, and then continued on to break the next major support at $850.00.
On the other hand, ETH/BTC started consolidating losses around the 0.0800BTC level. It may correct higher in the near term with resistances at 0.0850BTC and 0.0880BTC.
Looking at the 2-hour chart of ETH/USD, there was a tiny correction initiated from the $825.00 level. However, the upside move was limited as the pair failed to break $860.00 and a crucial bearish trendline with current resistance at $850.00.
The pair declined past the last low of $825.00 and even broke the $800.00 support, trading as low as $794.30. There is a major support on the downside near $780.00. Therefore, the price could possibly start to consolidate around the $780.00 and $800.00 levels.
However, ETH/USD must move above the $850.00 level to recover and get back into the bullish zone. Looking at the 30-minute chart of ETH/USD, there are two bearish trendlines forming with resistance at $810.00 and $860.00.
In the short term, the price may perhaps retest the $850.00-860.00 resistance zone. Above $860.00, the price should trade back toward the $900.00.
On the downside, the recent low of $794.30 is a short-term support. The most important support sits at $780.00, which has prevented declines on many previous occasions. Therefore, ETH/USD must stay above the mentioned $780.00 level to avoid further declines in the near term.
The RSI has reached the extreme oversold levels.
The MACD is gaining strength in the bearish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets
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