September 29, 2018 2:47 PM
Ether’s price trimmed its gains against the US dollar while correcting slightly versus bitcoin. ETH/USD must stay above the $215.00 and $210.00 supports to recover in the short term.
Ether’s price declined sharply and tested the $215.00 support area against the US dollar.
A double top pattern is formed at $234.00 on the hourly chart of ETH/USD.
ETH/BTC is currently correcting lower toward the 0.0320BTC support.
Technically, the hourly chart indicators moved back sharply into the bullish territory.
Ether Price Analysis
Yesterday, we discussed that the next move in ETH/USD could be either above $234.00 or toward $215.00. The pair failed to break the $234.00 resistance, resulting in a bearish reaction toward the $215.00 support.
ETH/BTC also failed to move past the 0.0340BTC resistance. The pair started a downside correction, and it seems like the pair may test the next support at 0.0320BTC in the coming sessions.
Starting with the hourly chart of ETH/USD, the pair failed on two occasions near $234.00-235.00 and formed a double top pattern. Later, there was a sharp downside move and Ether declined below the $225.00 and $222.00 levels.
During the decline, there was a break below the 50 percent Fibonacci retracement level of the recent upward move from the $210.06 low to $234.18 high. The next major resistance is close to $225.00-227.00.
The 6-hour chart of ETH/USD indicates that the pair is forming a key triangle pattern with current resistance at $227.00 and support at $215.00. A breakdown below the $215.00 support is likely to accelerate losses toward the $200.00 handle and the 61.8 percent Fibonacci retracement level of the major move from the $167.73 low to $254.66 high.
If ETH/USD fails to recover and clears the $210.00 support, there could be a sharp downside move in the coming sessions.
Important Resistance Levels
$220.00 and $227.00
Important Support Levels
$215.00 and $210.00
The RSI is now well below the 40 level.
The MACD is back with strength 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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