Ether is correcting lower against the US dollar but is stable versus bitcoin. ETH/USD could extend the current correction, but it remains supported.
Ether’s price started a downward correction and traded below the $520.00 support against the US dollar.
There are several important supports on the 2-hour chart of ETH/USD, such as $480.00 and $460.00.
ETH/BTC is consolidating the recent gains above the 0.0620BTC support.
Technically, the 2-hour chart indicators are moving lower in the bullish territory.
ETH/USD is Approaching Key Supports
There were further gains in ETH/USD above the $530.00 level. However, the pair could not gain momentum above $535.00, which ignited a downward correction.
On the other hand, ETH/BTC is still above the 0.0620BTC support. The pair is currently consolidating gains before it makes an attempt to surpass the 0.0650BTC resistance.
Looking at the 30-minute chart of ETH/USD, the pair formed a short-term top at $537.51 before declining. It dropped by more than $20.00, and broke supports such as $520.00 and $510.00. There was also a break below the 23.6 percent Fibonacci retracement level of the last leg from the $452.41 low to $537.51 high.
However, there are many supports on the downside, including the $500.00 psychological level. Below the mentioned $500.00, the 50 percent Fibonacci retracement level of the last leg from the $452.41 low to $537.51 high awaits at $492.00.
The 2-hour chart of ETH/USD suggests that the $480.00 and $460.00 levels are crucial supports. Therefore, if there is an extension of the current correction, Ether’s price could find a strong buying interest around $480.00-495.00.
Additionally, the next key support is around $460.00 and a bullish trendline on the same chart. The broken supports at $510.00 and $520.00 will most likely act as resistances. Should Ether succeed in surpassing the $520.00 resistance, the price may resume its uptrend above $530.00.
Overall, ETH/USD is short-term bearish and the 20 SMA maintains a downward slope near the daily low.
Important Resistance Levels
$510.00 and $520.00
Important Support Levels
$492.00 and $480.00
The RSI is moving lower toward the 50 level.
The MACD is reducing its bullish slope.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets
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