Ether struggling against the US dollar. ETH/USD is currently forming a decent support but it is facing many challenges and hurdles on the upside.
Ether fell sharply and declined below a key support at $640.00 against the US dollar.
There was a break below a crucial contracting triangle with support at $690.00 on the 6-hour chart ETH/USD.
ETH/BTC is showing a few bearish signs and it may test the 0.0720BTC support.
Technically, the 6-hour chart indicators have reached extremely oversold levels.
Can ETH/USD Move Past $650?
Yesterday, we saw an increase in bearish pressure on ETH/USD. The pair failed to hold a key support at $640.00 and even declined below the $600.00 handle before finding bids near $575.00.
ETH/BTC seems to be under a minor selling pressure below 0.0750BTC. It may move down toward the 0.0720BTC level, which is an important support.
Starting with the 6-hour chart of ETH/USD, there was a bearish break below a crucial contracting triangle with support at $690.00. It opened the doors for more declines and the pair fell below the $640.00 and $600.00 support levels.
It traded as low as $572.29 and is currently correcting higher. The current 6-hour candle is positive, but the pair is facing a lot of resistance. First, the 23.6 percent Fibonacci retracement level of the last decline from the $894.91 high to $572.29 low.
Second, the broken support at $640.00-650.00 will most likely act as a significant barrier. The third resistance on the 2-hour chart of ETH/USD sits at $675.00, which was also a support earlier.
The last resistance is the 50 percent Fibonacci retracement level of the last decline from the $894.91 high to $572.29 low around $730.00. On the downside, the recent low of $572.29 seems to be a short-term bottom.
A break below the $575.00 support zone could push Ether’s price toward the next major support at $540.00. The overall market sentiment is currently bearish until ETH/USD surpasses the $650.00 resistance.
Important Resistance Levels
$650.00 and $675.00
Important Support Levels
$575.00 and $540.00
The RSI is slowly recovering from the oversold levels.
The MACD is placed strongly 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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