Ether’s price is recovering nicely against the US dollar and bitcoin. ETH/USD could accelerate gains if it moves past $470.00.
Key Highlights
Ether’s price extended declines and broke a key support at $450.00 against the US dollar.
ETH/USD is recovering with a break above a declining channel on the hourly chart at $455.00.
ETH/BTC traded close to the 0.0600BTC support and bounced back.
Technically, the hourly chart indicators are recovering higher in the bearish territory.
Ether Price Analysis
ETH/USD failed to hold a key support at $450.00-452.00 and declined toward the $440.00 level. The pair traded as low as $440.85 before Ether sellers lost control.
Similarly, there was a sharp decline in ETH/BTC toward the 0.0600BTC support and a low was formed near 0.0604BTC. Later, the pair recovered and moved above the 0.0620BTC resistance.
The hourly chart of ETH/USD indicates that the pair was in a significant downtrend from well above $500.00. The pair followed a declining channel and traded as low as $440.85. Later, a strong buying interest emerged near $440.00, resulting in a decent recovery above the $450.00 pivot level.
Ether’s price broke the channel resistance at $455.00 to move into a short-term bullish zone. The next resistance awaits near $470.00 and the 38.2 Fibonacci retracement level of the recent drop from the $515.09 high to $440.85 low.
To recover further, the price must move above the $480.00 resistance and the 50 Fibonacci retracement level of the recent drop. Conversely, a failure to break the $470.00 and $480.00 resistances could push the price back toward $450.00.
The 6-hour chart of ETH/USD suggests that the $450.00 support region is a significant barrier, below which the next key support sits at $425.00.
During the recent drop, the price broke a major bullish trendline with support at $460.00, indicating a bearish bias. However, if Ether continues to stay above $450.00, it could start a fresh upward wave. More importantly, should there be a recovery in ETH/BTC above 0.0650BTC, it may help move ETH/USD above $480.00.
Important Resistance Levels
$470.00 and $480.00
Important Support Levels
$450.00 and $425.00
Hourly RSI
The RSI is slowly moving higher toward the 45-50 levels.
Hourly MACD
The MACD is reducing its bearish slope.
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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