Technically, the 2-hour chart indicators showing signs of a pullback from the bullish territory.
Can Ether Price Correct Further?
Yesterday, we saw how Ether price climbed above the $50 level against the US Dollar, and then started a correction. There was a high formed at $52.80 from where there was a pullback.
Similarly, there was a correction initiated against the Bitcoin as well. ETH/BTC pair retreated from the 0.045BTC level and now consolidating above 0.036BTC.
Let us have a look at the 2-hour chart of ETH/USD to understand the current price action. There is one big bearish candle formed near $52.80, which is pointing a major rejection above $50.
The pair dipped below $40 once and now consolidating gains above the $40 handle. There is a nice trend line support formed on the chart, which is currently holding losses, and preventing the pair from closing below $40.
It looks like the price has started a consolidating phase above the $40 handle, and may soon prepare for the next move. The question here is whether there can be a bounce towards $50 or further correction below $40.
Well, if the price fails to hold the trend line support at $40, there can be a move towards $32. The $40 support holds a lot of significance, as it also above the 50% Fibonacci retracement level of the last wave from the $32 low to $52.80 high.
So, as long as the price is above $40, it remains in the bullish zone. A break below it might ignite a downside move and could put Ether buyers on the back foot.
The 4-hour chart also points a similar picture. There is indecision pattern forming around $50. However, if the price dips further, there is a crucial trend line support waiting on the downside near $35.