Ether’s price recovery was capped against the US dollar and bitcoin. ETH/USD may perhaps retest the $700.00 support zone in the near term.
Ether’s upward correction was capped by the $775.00 level against the US dollar.
ETH/USD seems to be consolidating losses above the $710.00 and $700.00 support levels on the 2-hour chart.
ETH/BTC has settled just above the 0.0800BTC pivot with a few bearish signs.
Technically, the 2-hour chart indicators are moving lower in the bearish territory.
ETH/USD Downsides Remain Limited
After testing a crucial support zone at $700.00, ETH/USD started an upward move. The pair traded above the $750.00 level, but gains were capped at $775.00.
Similarly, there was a minor recovery in ETH/BTC from the 0.0755BTC level. However, the pair seems to be struggling to move above the 0.0800BTC pivot.
The 2-hour chart of ETH/USD indicates that the pair bounced back sharply after it was rejected from the $700.00 support zone. It moved above the 38.2 percent Fibonacci retracement level of the last drop from the $833.91 high to $694.19 low.
However, the upward move was capped by the $775.00 level. It seems like the price completed a correction from the $694.19 low and is currently in the third wave.
Dropping down to the 30-minute chart of ETH/USD, there is a short-term bearish structure forming below $750.00. The pair has already pierced the $740.00 support and the 50 percent Fibonacci retracement level of the last leg from the $694.19 low to $775.30 high.
At the moment, the $720.00 level is preventing losses, but there is still a risk of more declines in the near term. On the upside, there is a connecting bearish trendline in place with resistance at $745.00.
A successful close above $745.00 and $750.00 could clear the path for more gains toward $770.00 and $800.00, and lower, Ether has a strong static support near $700.00.
The overall technical structure is still positive, but a proper bullish break above $750.00 is required for accelerated gains.
Important Resistance Levels
$745.00 and $750.00
Important Support Levels
$720.00 and $700.00
The RSI is now well below the 50 level.
The MACD is slowly gaining traction 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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