Ether price has pushed higher testing the $635 resistant zone. ETH formed a significant bullish trendline with $612 as support level on the chart. This was followed by a double top near $635. Statistics show that the price may decline further soon.
Will the Bulls Defeat the Bears?
On the plus side, there is a positive bias against BTC and the USD. The Ether to USD trading pair has shown signs of a short-term correction after it was rejected at $635.
Ether took an upside move from the support zone at $580 all the way to the resistance levels of $600 and #610. It traded higher and got to $630, but it could not retain the traction at $635. At $637, a high was formed, and the price started a new downward correction rally.
It went as low as the 23.6% retracement level gotten from the last rise from $588 to $637. Above the $610 level, there are two significant support levels on the downside. On the ETH/USD hourly chart, there is a bullish trendline at the $612 support level. The 50% retracement level from the last wave from $588 to $637 is preventing further declines at $612. It will be difficult for Ether to experience a downside break that falls below $612 and $610 in the short-term.
From the chart, you’ll see that the price was rejected two times near the resistance of $635. So, there is a chance of the price formulating a double top pattern near $635. This can result in more decline below $612.
If the price is to break below $612, then the next support may be at $600.
Traders should look out for the next major support which is $612 and the next significant resistance at $635. From the hourly chart, the MACD is gradually entering the bearish territory, and the relative strength index is moving towards 50.