ETH/USD Forecast: Fresh Correction Initiated
|Despite positive momentum, Ether price failed to settle above $20.00 against the US Dollar.|
|The ETH/USD pair moved down, and broke a support trend line at $19.50 on the 30-min chart.|
|There seems to be an extended correction formed with a potential for a move towards $18.50 or $18.20.|
Technically, the 2-hour chart indicators are heading south in the bearish territory.
Ether Price to Test Range Lows?
Fresh weakness on Tuesday is probing below $19.50 in ETH/USD after the pair failed to hold gains on Monday. There was another attempt by Ether price to move past $20.00 against the US Dollar, but it failed.
A new weekly high at $20.09 was formed before the price retreated fast. There was a sharp downside move with back to back bearish candles. During the downside move, the price surpassed a couple of supports.
The most important break was below $19.50, coinciding with a bullish trend line on the 30-min chart. It almost cleared the 50% Fibonacci retracement level of the last wave from the $18.38 low to $20.09 high. These signs suggest that the price is struggling to hold gains in the short term.
On the upside, there is a bearish trend line with resistance at $19.25. It is acting as a hurdle for a fresh recovery in Ether price and pushing it down. It looks like the price is under renewed correction pressure, and forming a new three wave pattern.
If it’s true, there is a chance of ETH/USD retesting the $18.20 support area in the near term. Now, let us move to a higher time frame chart to understand the current wave structure.
The 2-hour chart clearly points a rejection near $20.00. It also suggests that the price is forming a range pattern with support above $18.00 and resistance near $20.00.
The recent failure might be a completion of the third wave, calling for a downside move. So, if the $19.00 level paves way, the price might extend the corrective move and trade towards $18.20.