Technically, the 2-hour chart indicators are showing signs of a major downside correction.
Will the ETH/USD Correction Remain Limited?
It was a good start to the week as ETH/USD extended its gains and was able to move above the $1,200.00 level. A new all-time high was formed at $1,226.81 from where the pair started a major downside correction.
ETH/BTC also gained heavily and was able to move above the 0.0700BTC resistance. It is now trading in the bullish zone and is eyeing further gains toward the 0.0750BTC resistance.
Looking at the 30-minute chart of ETH/USD, there was a short-term top formed at $1,226.81. The pair moved down sharply and broke the 50 percent Fibonacci retracement level of the last wave from the $1,015.11 low to $1,226.81 high.
More importantly, there was a break below a bullish trendline at $1,120.00. It has cleared the path for more declines in Ether’s price toward $1,040.00 or even $1,000.00.
An intermediate support is around the 76.4 percent Fibonacci retracement level of the last wave from the $1,015.11 low to $1,226.81 high. Moving up to the 2-hour chart of ETH/USD, the pair is approaching a crucial bullish trendline with current support at $1,030.00-1,040.00.
The pair has to stay above the mentioned trendline support to avoid further declines toward $1,000.00. Should there be a 2-hour close below $1,000.00, the price could accelerate the current correction toward $880.00.