Ethereum Price Forecast: Ether Testing Last Line Of Defense

Ether’s price is moving south against the US dollar and bitcoin. ETH/USD is at risk of more losses below the $400.00 support area.

Key Highlights

Ether’s price failed to breach the $425.00 and $430.00 resistances and declined against the US dollar.

A significant resistance is formed near $425.00 and a bearish trendline on the 2-hour chart of ETH/USD.

ETH/BTC broke an important support at 0.0550BTC, opening the doors for a test of 0.0520BTC.

Technically, the 12-hour chart indicators are signaling heavy selling pressure in the bearish territory.

Ether Price Analysis

Yesterday, we discussed two key resistances at $425.00 and $430.00 for ETH/USD. The pair attempted a recovery, but it failed to surpass the $430.00 hurdle and declined below yesterday’s low.

More importantly, there was a bearish break below 0.0550BTC in ETH/BTC. The pair may perhaps continue to move down toward the next supports at 0.0535BTC and 0.0520BTC.

Ethereum Price Chart ETH

Looking at the 12-hour chart of ETH/USD, the pair started a major bearish wave after it broke a crucial bullish trendline with support at $465.00. The chart indicates that seven back-to-back bearish candles were formed and the price settled below the $450.00 support.

Ether is now approaching a significant support near the last low at $405.29, below which, the price could test the $400.00 handle. Should buyers fail to defend the $400.00 support, it may possibly push the price in a medium-term downtrend toward the $350.00 support.

Dropping down to the 2-hour chart of ETH/USD, the pair faced a strong resistance near $425.00 and $430.00. The price declined to a new low at $408.04 and it is currently consolidating near $410.00 with a bearish angle.

Ether Price Analysis Chart

To the topside, there is a key resistance formed near $425.00 and a bearish trendline. To recover, Ether’s price needs to surpass the trendline, $425.00 and the 23.6 percent Fibonacci retracement level of the last decline from the $469.05 high to $408.04 low.

The overall price action suggests more declines in Ether, but the $400.00 support region holds the key for the next move in ETH/USD in the near term.

Important Resistance Levels

$420.00 and $425.00

Important Support Levels

$405.00 and $400.00

12-hour RSI

The RSI is approaching the oversold levels near 20-25.

12-hour MACD

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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