ETH/USD Forecast: Risk of Deeper Pullback
|Ether price remained in corrective mode against the US Dollar with resistance near $13.00.|
|The 2-hour chart of ETH/USD signals a flag pattern formation with support at the moment at $12.50.|
|There is a risk of a deeper pullback since the price is losing momentum, and could trade towards $12.20.|
Technically, the 2-hour chart indicators are holding the bullish bias, but slowly losing strength.
Ether Price Signaling Correction
Yesterday, we saw how there was an upside rejection near $13.40 in Ether price against the US Dollar. Later, the price started a correction and traded close to the $12.50 level.
There was an attempt for another upside push, but the $13.00 mark proved to be a crucial resistance, as it prevented further gains. As a result, the price was confined in the $13.00-$12.50 range.
There are three waves already in the current correction, and it looks like it’s not over yet. If the ETH/USD pair continues to struggle near $13.00, there can be a deeper correction.
On the downside, the $12.50 support is holding losses at the moment. It represents the 38.2% Fibonacci retracement level of the last wave from the $11.24 low to $13.38 high.
So, a break below $12.50 might call for additional downsides with a possibility of a move towards $12.20. When we look at the 2-hour chart, the importance of $12.50 is clearly visible.
There is a flag formation with support at $12.50. The flag looks like a bullish formation, but the rejection candle near $13.38 is eye-catching. There is long tail formed, which generally means the price failed, and it’s a major hurdle.
We can say there are mixed signals, and the next move in ETH/USD might depend on the next break. If the price succeeds in moving above the $13.00 resistance, there can be a retest of $13.38.
Otherwise, a failure and break below $12.50 may call for a deeper pullback.