The ETH price is recovering but the upsides are still capped. This is by the $460 level that is against the US dollar. The bearish trend line is certainly forming and it has the chance to correct itself. Ethereum price is currently under a lot of pressure and this all comes from the US dollar and then Bitcoin. There is a high chance that the ETH/USD is going to extend the deadlines once the correction has been set straight.
There is a lot of proof that heavy declines were not few and far between last week. In the past week, the price of ETH fell from above $550 against the dollar. This happened very quickly and it also broke a lot of supports including $500 and $400. At one point it even traded as low as $362 and this is when the minor upside was initiated. It also tested the 23.6% FIB retracement of the previous decline. This came from the high of $595 to a low of $362.
The upside move was unable to gain momentum of $415 and when you look at the bearish trend line, it isn’t hard to see this. It formed a resistance at $460 but if there were to be a break at $460 then this could easily clear the way for a move on the upside. The next hurdle could even be the 50% FIB retracement level from a previous decline. This would be from the $595 high right to the $362 low and then closer to the $475.
On the downside, the low near to $362 is showing some decent support. If the price failed to stay above the $362 as mentioned then there could be a lot more loss to the $350 level. If it’s below $350, the next stop could then be the $320 level.
There is no telling what is going to happen, but what we do know is that there needs to be some stability on the market and if it doesn’t happen, this could cause some serious issues.