Ether’s price fell below a crucial support against the US dollar. ETH/USD is currently in a bearish zone and any recoveries are likely to face hurdles on the upside.
Ether’s price failed to overcome selling interest near $740.00 and declined sharply against the US dollar.
ETH/USD broke a key support at $710.00 on the 2-hour chart and declined toward $670.00.
ETH/BTC remained supported above 0.0820BTC and could rise slowly toward 0.0850BTC.
Technically, the 2-hour chart indicators moved sharply in the bearish territory.
ETH/USD’s Support Turned Resistance
It seems like the $740.00 resistance turned out to be a major barrier for ETH/USD buyers. The pair failed to move past this and declined sharply below the $710.00 and $700.00 support levels.
There was also an increase in selling pressure on bitcoin, which kept the ETH/BTC pair in a positive zone above the 0.0820BTC support. It may continue to slowly move higher toward the next resistance at 0.0850BTC.
Let’s analyze the 2-hour chart of ETH/USD to understand the recent decline of more than $50.00. The pair faced a strong sell wall near the $740.00 resistance, resulting in a major downward reaction.
The price declined and broke two important bullish trendlines with support near $710.00. Ether saw an increase in bearish momentum, pushing the price further below the $700.00 handle.
During the decline, Ether’s price even broke the 50 percent Fibonacci retracement level of the last major wave from the $638.62 low to $741.80 high at $685.
Later, a minor recovery was initiated from the $676.72 low. However, recoveries were limited and capped by the $710.00 level (previous support). The price declined back below $700.00 and resumed its downward trend. It broke a connecting bullish trendline with support at $690.00 on the 30-minute chart to move back in a bearish zone.
To the downside, there are many supports sitting near $670.00 and $660.00. Therefore, should there be a bearish extension below $675.00, buyers are likely to protect further losses. The last line of defense sits near the last swing low at $640.00, which is a crucial support.
Important Resistance Levels
$700.00 and $710.00
Important Support Levels
$670.00 and $660.00
The RSI is moving lower toward the 25-30 levels.
The MACD is gaining momentum 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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