Ether’s price declined markedly against the US dollar and bitcoin. ETH/USD is now well below $500.00 and is eyeing a test of $450.00.
Ether’s price made a sharp U-turn and declined below the $500.00 handle against the US dollar.
ETH/USD broke a significant bullish trendline with support at $520.00 on the 6-hour chart.
ETH/BTC failed to surpass the 0.0800BTC resistance and dropped back toward 0.0750BTC.
Technically, the 6-hour chart indicators turned sharply into the bearish territory.
Ether Price Analysis
There was a sharp bearish reaction during the past two sessions for ETH/USD. Ether’s price failed to move past the $550.00 barrier, resulting in a crucial break below $520.00 and $500.00.
Similarly, ETH/BTC was not able to surpass the 0.0800BTC resistance and started a downward move. The pair is moving lower and it could revisit the 0.0750BTC support.
Starting with the 6-hour chart of ETH/USD, the pair made a few attempts to move above the $550.00 resistance zone. Ether buyers failed to gain momentum above $550.00, resulting in a bearish break.
The price dropped heavily and broke a significant bullish trendline with support at $520.00 on the same chart. More importantly, there was a break below a crucial support at $500.00 and the 50 percent Fibonacci retracement level of the last wave from the $450.60 low to $548.12 high.
The current price action indicates that Ether started a fresh bearish wave and it could accelerate declines below $480.00 in the near term. At the outset, the price is testing the 76.4 percent Fibonacci retracement level of the last wave.
Moving down to the 30-minute chart of ETH/USD, the pair is under heavy selling pressure below $500.00. It seems like the price could continue to move down and test $450.00. If sellers remain in action, the price could feasibly trade at a new monthly low.
There are many hurdles near the $490.00 and $500.00 levels, and two bearish trendlines in place with resistance near $510.00. The overall market sentiment turned quite bearish with supports at $450.00 and $440.00.
Important Resistance Levels
$490.00 and $510.00
Important Support Levels
$465.00 and $450.00
The RSI is now well below 50 and is heading toward 30.
The MACD is back in the bearish zone with negatives moves.
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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