Technically, the 2-hour chart indicators are moving lower in bullish territory.
Ether Price Analysis (ETH)
After forming a strong support at $120.00, ETH/USD jumped above the $123.00 and $125.00 resistance levels. The pair even broke the $126.06 high and traded to a new monthly high at $126.59 before starting a downside correction.
ETH/BTC gained bullish momentum and broke the 0.0335BTC and 0.0340BTC resistances. A new monthly high was formed at 0.0344BTC; later, the pair corrected below the 0.0340BTC support. The next supports are at 0.0338BTC and 0.0335BTC.
Looking at the 2-hour chart of ETH/USD, there was a slow and steady rise from the $120.00 support. However, the pair failed to hold gains above the $126.00 level and corrected sharply lower below $125.00. The candle formed at $126.59 suggests a short-term bearish pattern.
Ether dipped below the $123.00 level and the 50 percent Fibonacci retracement level of the recent move from the $119.74 low to $126.59 high. However, there is a strong support formed near $120.00 and a bullish trendline on the same chart.
A bearish break below the $120.00 support could start an extended downside correction toward the $115.00 support in the near term. The 30-minute chart of ETH/USD suggests there are many supports, starting with $122.00 and the 61.8 percent Fibonacci retracement level of the recent move from the $119.74 low to $126.59 high.
Recently, there was a break below a connecting bullish trendline at $123.80, but dips toward the $122.00 and $120.00 supports are likely to find strong buying interest.
Overall, according to the 2-hour chart, the bullish case is strong as ETH price surpassed a bullish 20 SMA, and a solid support is formed near $120.00. To the topside, the key resistances are $124.00, $126.50, and $130.00.