Ether’s price could correct higher against the US dollar. ETH/USD must stay above the $500.00 support to recover in the near term.
Ether’s price extended declines and traded close to the $500.00 handle against the US dollar.
ETH/USD is likely forming a double bottom pattern above the $500.00 level on the 6-hour chart.
ETH/BTC remained range-bound below 0.0800BTC with limited declines.
Technically, the 2-hour chart indicators are currently in oversold levels.
Ether Price Analysis
The past five sessions were very bearish as ETH/USD declined below a few key support levels such as $550.00. The pair traded toward the $500.00 handle, which is a major support and it held the recent losses.
ETH/BTC saw a minor increase in selling pressure, but declines were limited since the price of bitcoin also fell heavily against the US Dollar.
Starting with the 6-hour chart of ETH/USD, there was a rejection from a connecting bearish trendline with resistance at $610.00. The pair fell sharply and broke the $580.00 and $550.00 support levels. A new monthly low was formed at $503.27 before buyers took a stand.
The pair is currently consolidating losses and is correcting higher above $510.00. It seems like the price is forming a double bottom pattern near the $505.00 level. Should the price bounce back, it could correct toward $550.00 and the 38.2 Fibonacci retracement level of the last decline from the $628.21 high to $503.27 low.
Above $550.00, the price may perhaps move back in a positive zone toward the 50 percent Fibonacci level of the last decline. On the flip side, a failure to recover in the short term could put a lot of pressure on Ether buyers.
An initial support is at $510.00 followed by the recent low of $503.27. Below this, the price may possibly clear the $500.00 handle. Overall, the double bottom pattern with support above $500.00 holds the key for the next move in Ether.
The MACD is placed heavily in a bearish zone.
The RSI is now near the extreme oversold level at 20 with a few recovery signs.
Important Support Levels
$510.00 and $500.00
Important Resistance Levels
$535.00 and $540.00
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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