Technically, the 4-hours chart is indicating an extension of the current correction towards the $11.50 support.
Ether price after yesterday’s surge towards the $12.85 level versus the US Dollar found offers and started a consolidating pattern in the form of a correction. There is a chance that the ETH/USD pair may move a few more points lower before it gains traction once again.
The pair has already slipped below the 38.2% Fib retracement level of the last wave from the $10.50 low to $12.86 high. Currently, there is a correction underway and the pair has formed a contracting triangle pattern on the hourly chart.
The pattern may play a major role in the near term for the next move in ETH/USD. There is a possibility of the pair moving towards the 50% Fib retracement level of the last wave from the $10.50 low to $12.86 high.
If we have a look at the 4-hours chart of ETH/USD, there is a monster support at $11.50 as highlighted yesterday. It was a crucial resistance earlier and now may act as a support. The last 4-5 candles on the H4 chart are pretty bearish and clearly suggesting a short-term top.
It means the current correction may extend in the near term. In my view, there is a possibility of a spike down to test the $11.50 support where there can be heavy bids. I think staying on the buyer’s side as long as the price is above the stated support is a good idea.