Ether fell sharply below key supports against the US dollar and bitcoin. ETH/USD is now in a bearish trend with supports at $500.00 and $475.00.
Ether could not hold a significant support at $550.00-580.00 and declined sharply against the US dollar.
There is a crucial bearish trendline with resistance near $640.00 on the daily chart ETH/USD.
ETH/BTC fell and broke the 0.0720BTC and 0.0700BTC support levels.
Technically, the daily chart indicators are about to reach oversold levels in the bearish territory.
ETH/USD Extended Decline
There was a solid increase in selling pressure on ETH/USD as it broke a couple of important support levels at $600.00, $580.00 and $550.00.
Similarly, ETH/BTC extended declines and it failed to hold a key support at 0.0700BTC. It is currently in a bearish zone and it may continue to decline toward the 0.0650BTC support.
Let’s look at the daily chart of ETH/USD to understand the current price action below the $750.00 pivot level. During February 2018, there was a recovery initiated from the $560.00 swing low. The pair corrected higher, peaking above the $900.00 level.
However, the pair could not hold gains and failed to break a crucial bearish trendline with current resistance near $640.00. A fresh downside wave started and the price broke the 50 percent Fibonacci retracement level of the last leg from the $564.10 low to $981.64 high.
Sellers took control and the price even broke the $564.10 low. Ether’s price settled below a significant support at $540.00-580.00, and the current decline could extend toward the 1.236 Fibonacci extension of the last leg from the $564.10 low to $981.64 high at $465.00.
Moving down to the 2-hour chart of ETH/USD, the pair is under a lot of bearish pressure with an immediate support at $500.00-510.00. On the upside, the broken support at $570.00 and a bearish trendline with resistance at $565.00 are likely to prevent recoveries in the near term.
Overall, the current bias is bearish with resistances on the upside at $570.00 and $640.00. An important support is at $500.00, with a break below this last could push the price toward $475.00.
The MACD is gaining momentum in the bearish zone.
The RSI is moving south toward the oversold levels.
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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