Ethereum Price in Correction Phase

Ethereum Price in Correction Phase

Ether’s price started an upward correction after trading as low as $365.14 against the US dollar.

There is a crucial resistance formed around the $450.00 level on the 4-hour chart of ETH/USD.

ETH/BTC recovered further and is currently approaching the 0.0600BTC resistance.

After a major decline, ETH/USD found support near the $365.00 level. The pair started an upward correction and it is currently trading well above the $365.14 low.

Similarly, ETH/BTC is gaining bullish momentum toward the 0.0600BTC level. The pair is now positioned nicely above the 0.0550BTC level, suggesting a positive trend formation from the 0.0500BTC level.

When looking at the hourly chart of ETH/USD, we can clearly see that a decent support base formed above $365.00. The pair then moved higher and broke the 23.6 percent Fibonacci retracement level of the last decline from the $465.29 swing high to $365.14 low.

Moreover, there was a break above a connecting bearish trendline with resistance at $400.00. These are positive signs and suggests that the price is stable and could move further higher.

Going forward, a proper close above the 50 percent Fibonacci retracement level of the last decline from the $465.29 swing high to $365.14 low is needed for more gains in the near term.

Looking at the 4-hour chart of ETH/USD, there is a consolidation pattern forming above the $365.00 level. Should the pair continue to move higher, it may perhaps face a strong resistance near the $450.00 level.

A successful 4-hour close above the $450.00 level would mean a major shift in the trend. On the downside, it seems like there is a solid support around the $360.00-380.00 zone.

In the short term, Ether’s price may consolidate above the $380.00 level before making an attempt to test the all-important $450.00 resistance.

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