Key Highlights
After trading as high as $20.62, Ether price started a short-term correction against the US Dollar.
The ETH/USD pair likely completed a correction wave, and might retest the $20.20-20.60 resistance zone.
There is an overlapping bearish candle formed on the 6-hour chart of ETH/USD, suggesting the importance of $20.60.

Technically, the hourly chart indicators are now back in the bullish zone after a dip.

Ether Price to Resume Bullish Trend?

Yesterday’s high at $20.62 produced a correction in ETH/USD. The pair traded in a range above $20.00 for some time, and attempted twice to break the stated level, but failed.

Ether Price Analysis Chart

As a result, Ether price moved down and broke the $20.00 handle. Moreover, there was a break below a connecting bullish trend line at $19.90. The price extended the correction, and traded close to the 38.2% Fibonacci retracement level of the last wave from the $15.50 low to $20.62 high.

Later, the ETH/USD pair found support near $18.30 and started moving higher. It is currently heading towards the $20.00 handle, which may once again act as a resistance area. Additionally, there is a clear resistance formed around $20.20-20.60 (congestion zone).

So, it won’t be easy for Ether buyers to push the price above $20.60.  In my opinion, we may witness a three wave correction pattern. In this case, the price might not break the recent high of $20.62 in the current wave.

The third wave could be another dip towards $18.80 before the correction pattern completes. When we look at the 6-hour chart, there is an overlapping bearish candle formed, which is a minor bearish signal.

Ethereum ETH/USD Forecast

It is a sign that the price faced substantial offers near $20.20-20.60. So, it won’t be easy for the price to surpass it. On the downside, there is a major connecting bullish trend line with support at $17.80.

Overall, ETH/USD remains supported for further gains, but a couple of correction waves cannot be discarded going forward.

Important Resistance Levels

$20.20 and $20.60

Important Support Levels

$19.40 and $19.00

Hourly RSI

The RSI technical indicator recovered from the 55 level, and heading north.

Hourly MACD

The MACD is moving back in the bullish zone with a minor divergence.
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The content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.

Ether Technical Analysis

Today ETH/USD Forecast: Consolidating Above $200
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03-04-2017 Can ETH/USD Buyers Keep The Rally Going?
03-03-2017 ETH/USD Breaks $20, New All-Time High On Cards?
   

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