Can ETH/USD Buyers Keep The Rally Going?
|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.
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.
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.