Ether’s price saw a modest uptick against the US dollar and bitcoin. ETH/USD could bounce back in the short term as long as it stays above $420.00.
Ether’s price held the $420.00 support with a few positive signs against the US dollar.
A double bottom pattern is likely forming with support at $420.00 on the 2-hour chart of ETH/USD.
ETH/BTC stayed above the 0.0700BTC support and is currently correcting higher.
Technically, the 2-hour chart indicators are consolidating in the bearish territory.
Ether Price Analysis
Yesterday, we discussed more losses in ETH/USD toward the $400.00 support. The pair dipped further and formed a new monthly low, but declines were protected by the $420.00 support zone.
Similarly, ETH/BTC found a strong buying interest above the 0.0700BTC support. The pair is currently correcting higher and it may perhaps move above the 0.0720BTC resistance to test 0.0740BTC.
Let’s look at the 2-hour chart of ETH/USD to understand the recent decline and the importance of the $420.00 support. The pair dipped from the $440.00 resistance and traded below the last low of $421.80.
However, Ether buyers successfully prevented losses below $420.00, and the price formed a new low at $420.24 before bouncing back more than $20.00 with a few bullish signs. It traded above the $440.00 resistance and formed an intraday high of $446.53.
More importantly, it seems there is a double bottom pattern forming near the $420.00 support. To confirm the pattern, Ether’s price must break the $450.00 resistance and a bearish trendline on the same chart at $460.00.
A successful daily close above $460.00 will most likely confirm a short-term bottom. In the mentioned case, the price may possibly accelerate gains toward the $500.00 and $520.00 resistance levels.
However, should the price break the double bottom pattern support at $420.00, it could continue toward $400.00. Moving down to the 30-minute chart of ETH/USD, there is a connecting bullish trendline formed with support at $432.00.
An initial resistance awaits near $445.00, above which, Ether’s price might attempt to clear the $450.00 and $460.00 barriers.
Important Resistance Levels
$445.00 and $450.00
Important Support Levels
$420.00 and $400.00
The RSI is still well below the 50 level.
The MACD is slowly 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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