Technically, the daily chart indicators have reached their midlines and gaining bearish momentum.
Ether Price Recovery Remains Capped
There was an increase in bearish sentiment on ETH/USD as the pair failed to hold an important support area near $305.00-300.00. Similarly, the ETH/BTC pair remained well offered and just managed to hold the 0.070BTC support.
Let’s start with the daily chart of ETH/USD, as it suggests an important technical structure. The chart shows how the pair failed to break a connecting trendline with resistance at $395.00-400.00 and started a sharp correction.
During the downside move, the pair breached a bullish trendline at $345.00 and formed a new monthly low at $275.82. Currently, Ether is struggling to hold another important bullish trendline with current support at $305.00.
The mentioned trendline support at $305.00 holds a lot of significance. A successful daily close below $305.00 would set the tone for further declines in ETH/USD towards the 50 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high around $265.00.
Below $265.00, the 61.8 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high at $233.00 could act as a key support zone in the near term.
Moving on to the 2-hour chart of ETH/USD, the pair attempted a minor-recovery from a sharp decline to $275.82, but further upside lacks momentum.
There is a declining channel forming with current resistance at $310.00. Should there be a break and close above $310.00, the current bearish bias would start fading.
Overall, a daily closing within the $305.00-300.00 range could be significant. Bearish extension below $300.00 would risk a retest of $275.82, and then again at $265.00. On the other hand, an immediate up barrier could emerge at $310.00 followed by $325.00 and $330.00.
The content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.