Technically, the hourly chart indicators are signaling a short-term downside move.
Ether Price to Hold $47?
Yesterday, we saw a clear close above $45.60 resistance in ETH/USD. It prompted further buying interest, and later the pair was able to break the 61.8% Fibonacci retracement level of the last decline from the $54.00 high to $41.10 low at 49.00.
The pair failed to break a major hurdle near $51.00. It traded as high as $50.92, faced a lot of offers, and started a downside move.
It is important to note that an ascending channel was formed on the hourly chart of ETH/USD, which was broken during the downside move at $49.50. It even broke the $50.00 handle, and settled below the stated level.
As the downside move was extended, Ether price moved towards below the 23.6% Fibonacci retracement level of the last wave from the $42.60 low to $50.92 high. The last few candles on the hourly chart suggests a short-term top, and start of a correction wave.
Looking at the current price action, it looks like the price may head towards the 38.2% Fibonacci retracement level of the last wave from the $41.10 low to $50.92 high, which is at $47.10. So, if there is an extended correction, the price may find support just around $47.00
When we look at the 4-hour chart of ETH/USD, there is a clear rejection near a crucial resistance area around $51.00. The same level stopped the upside move earlier as well.
Let’s hope the pair is not forming a double top pattern near $51.00, and holds the $47.00 support area. A failure to hold $47.00 could spark a double top pattern with a chance of a move towards $41.00. If it holds, there is a possibility of ETH/USD retesting $50.00.