Technically, the 2-hour chart indicators are moving lower toward the midlines.
Can Ether's Price Break $900?
This past week, there was a substantial recovery in ETH/USD. The pair traded higher and succeeded in breaking the $800.00 and $850.00 resistance levels before facing strong resistance near $900.00.
ETH/BTC mostly traded in a range and it recently moved above 0.1000BTC. However, it seems like the pair is finding it difficult to gain traction above 0.1000BTC, which could kickstart a downward correction.
The 12-hour chart of ETH/USD suggests that the pair is facing a significant resistance near $900.00. The recent recovery stalled near a key bearish trendline on the same chart with current resistance at $870.00.
More importantly, the upward move stopped around the 50 percent Fibonacci retracement level of the last major drop from the $1,238.92 high. It means Ether’s price completed the first wave from the $564.11 low and it has started the second wave.
The price decreased after forming a short-term high at $909.29 and traded below the 23.6 percent Fibonacci retracement level of the last leg from the $564.11 low. During the downward move, there was a break below a contracting triangle with support at $840.00 on the 2-hour chart of ETH/USD.
The pair is now approaching the $780.00-800.00 support area. Below $780.00, the price could test the crucial $750.00 level. Furthermore, the 50 percent Fibonacci retracement level of the last leg from the $564.11 low to $909.29 high is at $735.00.
Therefore, the $735.00-750.00 support is very important for the current wave of correction. As long as Ether is above the $735.00-750.00 support, it remains in an uptrend.
Once the current correction wave is complete, ETH/USD will most likely start the third wave toward the $900.00 and $1,000.00 levels. Below $735.00, the price could move back into the bearish zone, with the next supports at $700.00 and $650.00.