Ether’s price traded to a new yearly low below $320.00 against the US dollar. ETH/USD’s trend is overwhelmingly bearish below the $350.00 support.
Ether’s price dropped sharply after it failed to hold the $350.00 support against the US dollar.
ETH/USD remains in a major bearish trend and could decline further below $305.00 and $300.00.
ETH/BTC tumbled below the important support at 0.0550BTC.
Technically, the hourly chart indicators are gaining momentum in the bullish territory.
Ether Price Analysis
Yesterday, we discussed that persistent weakness below the $350.00 support in ETH/USD could indicate a more bearish outlook over the short-to-medium term. The pair broke many key support levels and formed a new yearly low below $320.00.
More importantly, ETH/BTC dived below the 0.0550BTC support and tested the 0.0520BTC area. Should the pair fail to stay above 0.0520BTC, the next stop for sellers could be 0.0500BTC.
Looking at the 6-hour chart of ETH/USD, there is a clear downtrend visible from well above $450.00. The pair broke two significant supports at $400.00 and $350.00 to move further into the negative zone.
The current price action indicates that there is a risk of more downsides in Ether toward the $305.00 and $300.00 support levels. Buyers may perhaps put up a fight near the $300.00 handle, but if they fail, the price will likely drop more than $30.00-40.00.
A short-term rebound may possibly find resistances near the $350.00 and $370.00 levels. Above the latter, there is a key connecting bearish trendline forming with resistance at $375.00.
Moving down to the hourly chart of ETH/USD, the pair broke a crucial trendline support at $355.00 and declined sharply. The past few candles suggest that Ether sellers are in full control and the price could drop to $300.00.
The overall technical structure on all timeframes are indicating an increased bearish bias for ETH/USD and ETH/BTC. The next line of defense for Ether buyers might be near $300.00.
Important Resistance Levels
$335.00 and $350.00
Important Support Levels
$305.00 and $300.00
The RSI has entered the oversold zone.
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. 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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