ETH/USD: Minor Recovery Capped By Monthly Pivot
|Ether price after trading as low as $9.14 against the US Dollar found support for a recovery,|
|The ETH/USD pair recovered well, and moved higher before finding resistance near the daily pivot of $10.00.|
|The pair is currently in the 2nd wave, which may end soon for the next wave (possibly higher).|
Technically, the 4-hour chart indicators are yet to recover from the bearish territory.
Ether Price Correction Wave
It looks like yesterday’s downtrend in Ether price ended against the US Dollar, as the price recovered well from the $9.10-9.00 support. The ETH/USD pair after trading as low as $9.14 gained bids and moved higher.
During the upside move, there was first a break above the 23.6% Fibonacci retracement level of the last decline from the $10.85 high to $9.14 low. It opened the gates for ETH/USD to move further higher.
The pair in a back-to-back candle move traded towards $10.00 where it found resistance. The stated resistance also represents the 50% Fibonacci retracement level of the last decline from the $10.85 high to $9.14 low.
It acted as a perfect level to stop the recovery wave from the $9.14 low. Later, there was again a downside move initiated. Let’s call it as a wave 2.
The pair traded lower and tested the $9.50 support area and the 61.8% Fibonacci retracement level of the last leg from the $9.14 low to $10.00 high. So, it looks like the second wave is about to end.
If that is the case, there are high chances of Ether price moving higher, and breaking the $10.00 resistance as well to complete the third wave of the current correction.
The 4-hour chart however fails to point any major upside move. No doubt, there are many support levels on the way down like $9.10 and $8.50, but the price also need to clear the resistance trend line at $10.00-10.20 for further gains.