Technically, the 2-hour chart indicators declined sharply and moved into the bearish territory.
Can Ether Price Bounce Back?
Yesterday, we discussed that if ETH/USD closes above $320.00, it would open the doors for further upsides towards $330.00 and $340.00. The pair rose to $345.24 (a new monthly high) on Monday following repeated failure on the part of sellers to keep the pair below $275.00.
However, there was a sharp rejection near $345.24 and the pair trimmed almost all of its intraday gains. It moved down by more than $50.00, trading as low as $293.11.
A bullish trendline on the 2-hour chart of ETH/USD prevented declines and pushed the pair back higher. The $295.00 support also played its part well in protecting Ether’s price from setting a bearish trend.
After consolidating yesterday’s gains, the pair is currently trading above the $300.00 psychological level. On the upside, an immediate resistance at $320.00 now serves as the 50 percent Fibonacci retracement level of the recent drop from the $345.24 high to $293.11 low.
The $320.00 resistance is once again an important barrier for buyers in the short term. A successful close above $320.00 (H2 close) would push the price back towards $340.00-345.00.
Looking at the 6-hour chart of ETH/USD, there is a key bearish candle pattern that resulted in a sharp decline from $345.24.
A large bearish candle followed the pattern, signaling a crucial failure around $345.00. Should the decline continue and surpass $295.00, Ether has scope to extend its fall down to $280.00. To the upside, $320.00 is the immediate resistance, followed by the $340.00-345.00 zone, where selling interest remains strong.
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