Ether is trading near important pivot levels against the US dollar and bitcoin. ETH/USD daily chart is still pointing towards possible weakness in the near term.
Ether’s price is holding a crucial support near $500.00 against the US dollar.
The daily chart of ETH/USD is signaling a bearish trend below the $620.00 resistance.
ETH/BTC must stay above the 0.0600BTC support to start a new upward recovery this upcoming week.
Technically, the daily chart indicators are flat in the bearish territory with consolidation signs.
Can ETH/USD Recover Above $550 and $620?
This past week was mostly bearish as ETH/USD declined to a new yearly low at $454.86. The pair remains in a bearish zone and is currently holding a major support area near $500.00.
Similarly, ETH/BTC declined heavily this past week and settled below the 0.0650BTC support. The pair is now trading near a key pivot at 0.0600BTC with resistances on the upside at 0.0620BTC and 0.0650BTC.
Let’s start with the daily chart of ETH/USD to understand the current trend. It seems like the price topped above the $1,400.00 level and started a downward move. During the decline, it broke a few important supports such as $1,000.00 and $750.00.
Looking at the technical structure, there is a five wave pattern in place from the $1,422.8 high. The price is currently in the fifth wave which could complete anywhere around the $450.00-500.00 zone.
To start a fresh uptrend, Ether must surpass a significant bearish trendline with a current resistance at $620.00. A successful close above that trendline resistance will most likely push the price back in a positive zone toward $750.00 in the near term.
On the downside, if the mentioned fifth wave is not complete at $454.86, there may perhaps be further declines with possibilities of a new low below $454.86.
Moving on to the 2-hour chart of ETH/USD, there is a contracting triangle with resistance at $530.00 and support at $500.00. The next break either above $530.00 or below $500.00 should set the path for Ether’s next move.
Above $530.00, the next resistances are at $550.00, $590.00 and $620.00. On the flip side, a push below $500.00 could call for a new low below $454.86.
Weekly Resistance Levels
$550.00 and $620.00
Weekly Support Levels
$500.00 and $450.00
The RSI is currently flat near the 40 level.
The MACD is placed nicely 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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