Ether is showing mixed results this morning against the US dollar and bitcoin. ETH/USD breached the $520.00 support and it could decline further.
Ether’s price has been pinballing since it’s fall from well above $550.00 against the US dollar.
ETH/USD failed to break a crucial bearish trendline with current resistance at $570.00 on the 6-hour chart.
ETH/BTC cleared the 0.0620BTC support but the 0.0600BTC support is still intact.
Technically, the 6-hour chart indicators are declining sharply in the bearish territory.
ETH/USD Remains at Risk of More Declines
Yesterday, we discussed how ETH/USD broke a significant support at $550.00 and started a fresh downward wave. The pair declined further, struggling to hold the $515.00 support level.
Similarly, ETH/BTC remains in a bearish trend and it failed to hold the 0.0620BTC support. The current trend may accelerate and the pair could even break the 0.0600BTC support.
The 6-hour chart of ETH/USD suggests that the pair struggled to surpass a crucial bearish trendline with current resistance at $570.00. As a result, there was a downward reaction and the price broke a connecting bullish trendline at $580.00.
It seems like the pair is under a lot of pressure and is trying to avoid a retest of the last swing low of $454.86. A daily close below $500.00 would increase bearish pressure on Ether.
Looking at the 2-hour chart of ETH/USD, the pair is attempting a close below a major support at $515.00. Should there be a 2-hour close below this level, Ether’s price will most likely pierce the $500.00.
There was also a break below the 50 percent Fibonacci retracement level of the last wave from the $454.86 low to $590.15 high. Overall, the current price action is increasingly bearish below the $550.00 pivot level.
On the upside, an initial resistance sits at $530.00, above which, there is a bearish trendline with resistance at $550.00. To sum up, Ether’s price is at risk of more declines unless buyers succeed in pushing ETH/USD back above the $550.00 level.
Important Resistance Levels
$530.00 and $550.00
Important Support Levels
$500.00 and $450.00
The RSI broke is now well below the 40 level and heading lower.
The MACD is gaining pace 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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