Technically, the hourly chart indicators turned sharply in the bearish territory, and later recovered.
Ether Price Signaling a Top?
Yesterday, we saw how there was a fresh correction wave initiated in Ether price versus the US Dollar. The price was looking to correct further lower due to a failure to settle above $20.00.
The ETH/USD pair fell recently, and broke a couple of important support levels to surprise traders. It first cleared a bullish trend line at $19.50 on the hourly chart. Second, it was looking to form support near $18.50, but failed and moved down.
Finally, the price also cracked the all-important $18.20-18.00 support area, which opened the doors for more declines. A new weekly low was formed at $17.41 before the price started a recovery.
The price has recovered well so far, but faced resistances on the upside. The broken support at $18.50-18.60 may now prevent gains. There is also a bearish trend line around the same area to increase pressure. Furthermore, the 38.2% Fibonacci retracement level of the last decline from the $20.09 high to $17.41 low is also positioned near $18.50.
So, as long as the price is below the trend line resistance at $18.60, there are chances of another dip to complete the current correction pattern.
The 4-hour chart also suggests the importance of the $18.60 resistance, as there is a bearish trend line aligned on the upside.
In my view, the price needs to close back above $18.60 in order to overcome the current bearish pressure. A failure could signal another downwards push. The recent downside is not a trend change for Ether, but it is certainly a short-term top formation.