Ether’s price tumbled below key supports against the US dollar and bitcoin. ETH/USD could extend the current downtrend toward the $210.00 support zone.
Ether’s price settled below the $300.00 support and dropped to $250.00 against the US dollar.
ETH/USD broke a crucial declining channel with resistance near $280.00 on the 12-hour chart.
ETH/BTC declined more than 12% and traded below the 0.0480BTC and 0.0450BTC supports.
Technically, the 12-hour chart indicators are moving lower into the oversold region in the bearish territory.
Ether Price Analysis
Yesterday, we discussed the importance of the $300.00 support area for ETH/USD. The pair failed to stay above the $300.00-305.00 support area, resulting in a sharp downward move below the $280.00 and $260.00 levels.
ETH/BTC also tumbled and broke the 0.0480BTC and 0.0450BTC support levels to register one of the biggest monthly losses in 2018. The next major support awaits near the 0.0415BTC level.
Let’s analyze the 12-hour chart of ETH/USD to understand the current downtrend from the $515.09 swing high. The pair broke a key bullish trendline with support at $455.00 to establish a significant bearish trend. Later, Ether sellers succeeded in clearing two important supports – $400.00 and $350.00.
The price dropped heavily and settled below the $300.00 support. More importantly, there was break below a declining channel with support near $265.00. A new yearly low was formed at $250.77 before the price started a short-term rebound. On the upside, resistances are formed around $280.00 and $300.00.
Dropping down to the 2-hour chart of ETH/USD, the pair seems to be consolidating losses above the $250.00 level. Should Ether’s price break this level, there could be another bearish wave toward the $220.00 level.
However, the next major support and a possible reaction region is near $200.00-210.00, which is the base formed in September 2017 before the price rallied to January highs well above $1,000.
Overall, Ether remains in a significant downtrend. Should buyers fail to defend $250.00, the next stop for sellers will most likely be close to $200.00-210.00.
Important Resistance Levels
$280.00 and $300.00
Important Support Levels
$250.00 and $210.00
The RSI is currently well below the 30 level.
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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