Ether continued to decline into the bearish zone against the US dollar and bitcoin. ETH/USD even broke the $800.00 support, and may continue this trend.
Ether’s price failed to hold an important support at $820.00-822.00 and declined further against the US dollar.
There is a crucial resistance region forming near $810.00 and $825.00 on the 2-hour chart ETH/USD.
ETH/BTC broke the 0.0750BTC support and it could extend declines toward 0.0720BTC.
Technically, the 6-hour chart indicators are extending losses in the bearish territory.
ETH/USD is Forming Bearish Structure
Yesterday, a new downward wave initiated with support near $822.00 in ETH/USD. The pair was not able to correct higher but, instead, dropped below this support.
Similarly, there was an increase in bearish pressure on ETH/BTC. The pair declined below a major support at 0.0750BTC and could now test the next support at 0.0720BTC.
Looking at the 6-hour chart of ETH/USD, the last downward wave completed near $780.00. The pair started the second wave and moved above the 23.6 percent Fibonacci retracement level of the last drop from the $981.64 high to $788.16 low.
However, the bullish wave faced sellers near a bearish trendline with resistance at $850.00. Moreover, the 50 percent Fibonacci retracement level of the last drop from the $981.64 high to $788.16 low prevented gains above $880.00-890.00.
As a result, a third wave got triggered and the pair declined past the $800.00 level, even breaking below the last low of $788.16, which means the price may extend declines.
This current wave could complete between $750.00 and $770.00 before Ether starts a substantial recovery. However, if the price closes above $780.00 today, we may see a comeback.
Moving down to the 2-hour chart of ETH/USD, there is a crucial resistance region forming near $810.00 and $825.00. Should the pair begin an upward correction, it will most likely face sellers near $825.00.
The overall market sentiment is negative as long as Ether’s price is below $800.00. A recovery above $825.00 may perhaps reduce the bearish pressure in the near term.
Important Resistance Levels
$810.00 and $825.00
Important Support Levels
$770.00 and $750.00
The RSI is currently around the 35 level with negative signs.
The MACD is placed strongly 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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