ETH/USD: $50 is Here, Anticipate Correction Ahead
|Ether price continued to trade higher and moved above the $50 level against the US Dollar.|
|There was high formed near $52.80 in the ETH/USD pair from where a correction phase is initiated.|
|ETH/BTC was also heavily bid, as it attempted a move above 0.040BTC.|
Technically, the hourly chart indicators are retreating from the bullish territory.
Ether Price Uptrend Holding Well
There was a sharp upside move in Ether price, as it gained by around 20% once again versus the US Dollar. Yesterday, we discussed that if buyers stay in action, there is a chance of ETH/USD heading towards $50.
The price did move higher, tested $50 and cleared it for a new all-time high at $52.80. There were strong offers presented around the stated level, which initiated a correction in Ether price.
Similarly, the ETH/BTC pair gained a lot and was able to move past the 0.040BTC handle. It was seen trading with a sharp increase in buying interest as Bitcoin price was sliding simultaneously.
When we look at the 30-min chart of ETH/USD, there was a clearly a sharp rise above $50. At the same time, a major reaction is visible near $52.80. The price retreated sharply after testing the stated level, and started a correction.
The pair has already made a significant correcttion, and moved below the 23.6% Fib retracement level of the last wave from the $32 low to $52.80 high. The price is heading towards a major support area around $42 where buyers might emerge.
Also, the 50% Fib retracement level of the last wave from the $32 low to $52.80 high is also around $42. An important point is the fact that the price is currently attempting a close below a bullish trend line on the 30-min chart.
If there is a close below the trend line, there can be a decline towards $42 or $40. The 2-hour chart also suggests a major correction with a possibility of a move towards $40 in the short term.