Ether’s price is holding important supports against the US dollar and bitcoin. ETH/USD must clear the $490.00 resistance to start an upward recovery.
Ether’s price fell sharply and retested the monthly low at $450.60 against the US dollar.
Two key resistances are forming near $480.00 and $490.00 on the hourly chart of ETH/USD.
ETH/BTC stayed above the 0.0750BTC support and is currently consolidating losses.
Technically, the hourly chart indicators are showing a few signs of a recovery in the bearish territory.
Ether Price Analysis
Yesterday, we witnessed a heavy downward move below the $500.00 handle. ETH/USD declined more than 10 percent and tested the monthly low at $450.60.
ETH/BTC also faced an increased selling pressure and declined toward the 0.0750BTC support. The pair is currently consolidating losses with resistances at 0.0780BTC and 0.0800BTC.
Looking at the hourly chart of ETH/USD, there were many back-to-back red candles, indicating a strong bearish bias below $525.00. The pair settled below the $500.00 handle and revisited the last swing low at $450.00.
Ether buyers successfully defended more declines and the price started consolidating losses. The price corrected higher and tested the 23.6 percent Fibonacci retracement level of the last drop from the $544.81 high to $450.58 low.
However, there is a major resistance near $480.00 and a bearish trendline on the same chart. A successful break above this could push the price toward the next trendline at $490.00. If the price rises above that, Ether will most likely stage a solid comeback.
The 6-hour chart of ETH/USD suggests that the $450.00 support holds a lot of importance. Should there be a bearish break below this, the price may well accelerate declines toward $400.00 in the near term.
The current wave structure indicates that the price is in the third wave from the $615.89 high, which should end below the $450.00 low. On the flip side, there is a RSI divergence forming on the same chart, signaling an upward wave.
To sum up, there are many conflicting signals on the charts. Therefore, the next move depends on whether Ether holds the $450.00 support.
Important Resistance Levels
$480.00 and $490.00
Important Support Levels
$460.00 and $450.00
The RSI is recovering toward the 45 level.
The MACD is currently reducing its bearish slope.
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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