There has been a sharp decline in bitcoin price below $12,000 against the US Dollar recently. BTC/USD even broke the $12,000 support level to register a 10% decline. It prompted a sharp decline in Ethereum as well below the $300 support area. Moreover, the ETH/USD pair declined below the $295 support level to move into a bearish zone. There was also a close below the $295 level and the 100 hourly simple moving average.
Besides, there was a downside break below a contracting triangle with support at $308 on the hourly chart of ETH/USD. A swing low was formed near $281 and the price is currently consolidating losses. An initial resistance is near the $288 level. It coincides with the 23.6% Fib retracement level of the recent decline from the $310 high to $270 swing low. If there is an upside correction, above $288, the price might recover above $290.
The next important resistance for the bulls is near the $295 level. Moreover, the 50% Fib retracement level of the recent decline from the $310 high to $281 swing low is also near the $295 level. Therefore, the bulls are likely to face a strong resistance near the $295 zone. A successful close above $295 might start a fresh increase towards the $310 and $315 levels.
On the downside, the main support is near the $270 level. If there is a downside break below the $280 support, the price could decline further towards the $260-262 support area.
In the short term, there could be an upside correction above the $290 level, but the price may struggle to clear the $295 zone. Conversely, if there is a break below $270, the price could move further into a bearish zone.