Ether’s price is holding key supports against the US dollar and bitcoin. However, ETH/USD remains at a risk of more declines as long as it is below $420.00 and $450.00.
Ether buyers are putting up a strong fight to hold the $400.00 support against the US dollar.
A significant bearish trendline is formed with resistance at $450.00 on the daily chart of ETH/USD.
ETH/BTC recovered and moved above the 0.0570BTC and 0.0580BTC resistances.
Technically, the daily chart indicators are placed heavily in the bearish territory.
Ether Price Weekly Analysis
This past week, there was a sharp increase in selling pressure on Ether. ETH/USD declined below the $450.00 and $420.00 support levels and even spiked below the $400.00 handle before starting a consolidation phase.
Similarly, there were heavy losses in ETH/BTC. The pair traded a few points below the 0.0550BTC support before recovering above 0.0580BTC. It may perhaps trade in a range below 0.0600BTC before making the next move.
Let’s look at the daily chart of ETH/USD to understand the recent drop. The price failed to break an important resistance near $480.00 and started a downward move. It declined and broke a crucial bullish trendline with support at $460.00.
It seems like Ether’s price failed near a significant bearish trendline with current resistance at $450.00. During the decline, the price settled below $420.00 and traded to a new multi-month low at $397.79.
The price is currently consolidating losses above $400.00 and it could correct a few points in the short term. The 2-hour chart indicates that there are many resistances and bearish trendlines positioned below $420.00.
Therefore, a successful 2-hour close above the $420.00 resistance is required to start a short-term bullish wave. In the mentioned scenario, the price may possibly correct toward the $450.00 resistance (bearish trendline on the daily chart).
On the flip side, should Ether fail to break the $420.00 resistance, the price might slide further below the $400.00 level. To sum up, ETH/USD is trading near an important range between $400.00-420.00, and the next move would depend on whether buyers succeed in pushing the price above $420.00.
Weekly Resistance Levels
$420.00 and $450.00
Weekly Support Levels
$400.00 and $365.00
The RSI is slowly recovering from the oversold levels.
The MACD is placed heavily 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. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging.
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