Technically, the 2-hour chart indicators are moving to and fro near their midlines.
Ether Price to Correct and Consolidate
The ETH/USD pair mostly traded in a range with a mild bearish tone during the past 2-3 sessions. On the other hand, ETH/BTC declined roughly 3 percent and retreated from the 0.073BTC level.
Yesterday, we discussed an important resistance area near $340.00 and the 50 percent Fibonacci retracement level of the last decline from the $395.41 high to $275.82 low (considering the average price).
Looking at the 2-hour chart of ETH/USD, the pair seems to be struggling to clear the $340.00 resistance. After trading as high as $339.50, sellers got into the action and pushed the pair below a connecting bullish trendline with support at $325.00.
However, downsides were limited by the 23.6 percent Fibonacci retracement level of the last leg from the $267.72 low (Bitfinex) to $339.50 high. The price is currently trading in a range near $330.00 and preparing for the next move.
A bullish trendline with support at $322.00 on the 30-minute chart of ETH/USD also acted as a hurdle for the recent slide from $339.50. On the upside, there is a bearish trendline forming with resistance at $334.00.
Momentum beyond $334.00 level could get extended back towards retesting $340.00, above which Ether’s price is likely to dart towards the $350.00 resistance.
On the other hand, a successful break of $322.00 would put further pressure on buyers and cause ETH/USD to be vulnerable to sliding back towards the all-important $305.00-300.00 support.
Clearly, the pair is facing difficulties in surpassing $340.00. Therefore, a minor correction back towards $305.00 is possible in the near term. Alternatively, if ETH/USD survives a break below $322.00, it would attempt another break of $340.00.
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