Technically, the 2-hour chart indicators are about to move into bearish territory.
Ether Price Analysis (ETH)
Yesterday, we discussed key resistances near $124.00 and $126.50 for ETH/USD. The pair failed to gain momentum above $124.00 and recently declined below the $122.50 and $122.00 support levels to start a short-term downside correction.
ETH/BTC settled below the 0.0340BTC support after a sharp upward move. The pair could continue to move down toward the 0.0335BTC or 0.0332BTC support levels in the coming sessions.
The 2-hour chart of ETH/USD suggests that the pair was rejected near the $126.50 level. A bearish candle pattern was formed, resulting in a drop below the $125.00 and $124.00 levels. More importantly, Ether traded below a key bullish trendline at $122.20, opening the doors for an extended correction.
An immediate support is near the 23.6 percent Fibonacci retracement level of the upward move from the $101.40 low to $126.59 high. Should Ether decline below the $120.00 support, the price could test the key support near $116.50.
On the flip side, there are high chances of a decent bounce from the $120.00 support area. To the topside, an initial resistance is $122.50, followed by a bearish trendline, with resistance at $123.80 on the 30-minute chart of ETH/USD.
An intermediate resistance is $123.50 and the 50 percent Fibonacci retracement level of the recent decline from the $126.59 high to $120.46 low. A successful break above $123.80 and $124.00 will most likely start a fresh bullish wave toward $126.50 or $128.00.
In the short term, Ether’s price could extend its downside correction up to the $116.50 price zone if it breaks below the $120.00 support. Conversely, to start a fresh upward move, buyers need to gain strength above $124.00.