ETH/USD Correction Phase Likely Over
|Ether price after trading as low as $31.26 against the US Dollar found support and recovered.|
|The ETH/USD pair has likely completed a correction wave from the $52.80 high and is now back in the bullish zone.|
|ETH/BTC is also gaining momentum, as the pair is now back above 0.040BTC.|
Technically, the 2-hour chart indicators are back in the bullish territory with positive bias.
Can Ether Price Retest $50?
We recently witnessed a decline in Ether price against the US Dollar from the $52.80 high. The ETH/USD pair moved below $35 to trade close to the $32-30 support area. A low was formed near $31.26 from where the price started a recovery.
Similarly, Ether price corrected lower against Bitcoin and traded towards 0.036BTC. Later, ETH/BTC found support, moved higher, and now back above the 0.040BTC resistance.
So, it looks like Ether price has completed a correction phase. ETH/USD is already trading above the $38 and $40 resistance levels, which is a positive sign.
During the recent upside move, there were a couple of important breaks. First, the price broke the 23.6% Fibonacci retracement level of the last decline from the $52.80 high to $31.26 low. Second, the price successfully cleared a crucial bearish trend line on the 2-hour chart at $36.
It opened the doors for a sharp rise, as the price moved above $40. There was even a break above the 50% Fibonacci retracement level of the last decline from the $52.80 high to $31.26 low. This is clearly a positive sign for Ether buyers in the short term.
The pair has made a 2-hour close above $40, and formed a bullish trend line with support at $41. So, if the pair dips from the current levels, it is likely to find bids near $41-40.
When we look at the 30-min chart of ETH/USD, there are two bullish trend lines positioned at $42. They are acting as a hurdle for a decline and may produce a bounce.
Even if there is a break, the $40 handle could act as a strong support. On the upside, the recent high near $45.60 is a resistance band. A break above it could open the doors for a retest of $50.