Ether dipped below a key support at $510.00 against the US dollar. ETH/USD remains in a bearish zone with resistances near $515.00 and $525.00.
Ether’s price failed to hold the $510.00 and $500.00 support levels against the US dollar.
A significant bearish trendline with current resistance at $515.00 is intact on the 2-hour chart of ETH/USD.
ETH/BTC is holding the 0.0600BTC support, which is a positive sign.
Technically, the 2-hour chart indicators are gaining downward momentum in the bearish territory.
ETH/USD Could Retest $475
In the weekly analysis, we discussed the importance of the $500.00 support in ETH/USD. The pair failed to hold this level and declined further.
On a positive note, ETH/BTC is still holding the 0.0600BTC support. Should the pair close below 0.0600BTC, the price could accelerate declines in the short term.
Looking at the 30-minute chart of ETH/USD, there was a clear bearish break below a horizontal support at $518.00. As a result, there was a sharp drop and the price broke the $510.00 and $500.00 levels.
A new weekly low was formed at $477.31 before buyers appeared. The last three 30-minute candles are pointing to signs of a recovery. However, there are many hurdles, such as $500.00 and $510.00.
Moving up to the 2-hour chart, it seems like ETH/USD failed to break a significant bearish trendline with current resistance at $515.00.
The current technical structure will remain negative as long as the price is below $515.00, but a successful 2-hour close above this level may perhaps decrease the current bearish pressure and open the doors for a fresh upward wave.
On the flip side, the recent low of $477.31 may act as a decent support, the next buy zone being around $450.00. Overall, Ether could consolidate in the short term but it remains at a risk of more losses until there is a break above $515.00.
Important Resistance Levels
$500.00 and $515.00
Important Support Levels
$477.00 and $450.00
The RSI is now well below the 35 level.
The MACD is gaining momentum in the bearish zone.
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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