Ether is showing a few short-term bearish signs against the US dollar and bitcoin. ETH/USD could decline further toward the $515.00 support.
Ether’s price declined recently as it failed to hold the $555.00 and $550.00 supports against the US dollar.
There was a break below a key bullish trendline with support at $555.00 on the 2-hour chart of ETH/USD.
ETH/BTC is struggling to correct higher and remains at risk of more declines.
Technically, the 30-minute chart indicators are moving lower in the bearish territory.
ETH/USD is Seeing Declines
There was a fresh downward wave initiated in ETH/USD from the $590.15 swing high. The pair traded lower and broke two key support levels near $555.00 and $550.00.
ETH/BTC continues to flirt with the 0.0610BTC support. The pair remains at a risk of more declines if it fails to hold the 0.0610BTC and 0.0600BTC levels.
Looking at the 2-hour chart of ETH/USD, there was a short-term top formed at the $590.15 high. The pair failed to break a significant bearish trendline with current resistance at $580.00 and started a downward wave.
During the decline, the pair broke a key bullish trendline and a horizontal support at $555.00. Furthermore, there was a break below the 23.6 percent Fibonacci retracement level of the last wave from the $454.86 low to $590.15 high.
The next support is at $515.00, which is close to the 50 percent Fibonacci retracement level of the last wave from the $454.86 low to $590.15 high.
Dropping down to the 30-minute chart, ETH/USD started a three wave decline from the $590.15 high. It broke a connecting bullish trendline at $560.00 and is currently following a declining channel. It seems like the price may continue falling to complete the current third wave near $515.00-520.00.
To sum up, the current decline could complete either near $520.00 or $515.00 before the price bounces back. On the upside, resistances are at $550.00, $570.00, and $580.00 (2-hour bearish trendline).
The MACD has moved into the bearish zone.
The RSI broke the 50 level recently and heading south.
Important Support Levels
$520.00 and $515.00
Important Resistance Levels
$550.00 and $580.00
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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