Ether’s price bounced back against the US dollar but extended losses versus bitcoin. ETH/USD must stay above $450.00 to recover further in the near term.
Ether’s price traded to a new monthly low at $421.80 and recovered sharply against the US dollar.
ETH/USD broke a crucial bearish trendline with resistance at $450.00 on the 2-hour chart.
ETH/BTC broke the 0.0750BTC support and is currently struggling to recover.
Technically, the 2-hour chart indicators are moving higher in the bearish territory.
Ether Price Analysis
Yesterday, we discussed continued losses in ETH/USD below the $450.00 and $445.00 support levels. The pair did move down further and traded to a new monthly low at $421.80 before staging a solid recovery.
On the other hand, ETH/BTC failed to hold a key support at 0.0750BTC and extended declines. It seems like the pair could continue to move down toward the next support at 0.0720BTC.
Starting with the 2-hour chart of ETH/USD, the pair broke a contracting triangle with support at $470.00, and declined sharply. It broke the $450.00 and $445.00 support levels before forming a low at $421.80.
The price started a solid recovery, and a bullish candle with a long tail was formed at $421.80. Ether buyers gained momentum and pushed the price above the 23.6 percent Fibonacci retracement level of the last drop from the $548.12 high to $421.80 low.
Furthermore, there was a break above a crucial bearish trendline with resistance at $450.00 on the same chart. The pair spiked above the $470.00 level before topping at $473.12. Ether sellers protected further gains above $470.00 and the 38.2 percent Fibonacci retracement level of the last drop.
The 30-minute chart of ETH/USD indicates a short-term rejection at $473.12. However, the price is placed nicely above a connecting bullish trendline with support at $452.00 and a horizontal support at $450.00.
The current price action on the 30-minute chart is stable with a strong support at $450.00, below which, Ether’s price may perhaps drop to $435.00. To the topside, a 2-hour close above $475.00 could accelerate gains in ETH/USD above $485.00 and $490.00.
Important Resistance Levels
$475.00 and $485.00
Important Support Levels
$450.00 and $435.00
The RSI is currently near the 45 level with positive signs.
The MACD is slowly moving into the bullish 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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