Technically, the 2-hour chart indicators have started to retreat from the overbought levels.
Ether Price Correction Underway
It looks like Ether’s bullish trend was exhausted after piercing the $100.00 level against the US Dollar. Similarly, the ETH/BTC pair failed to hold the 0.060BTC handle, and started a downside move.
A substantial correction wave was initiated yesterday, as the ETH/USD pair moved down, and broke the $95.00 support area to trade towards $90.00. Before initiating a downside move, the pair broke a bullish trend line at $99.00 on the 30-min chart.
There was a sharp decline in Ether price, as it even failed to respect the $95.00 support area, and traded close to the $90.00 handle where it found support.
A recovery was initiated from the $90.33 low, and the price moved above the 23.6% Fibonacci retracement level of the last decline from the $103.67 high to $90.33 low.
It was a decent recovery, but failed around a key bearish trend line at $97.00, meeting the 50% Fibonacci retracement level of the last decline from the $103.67 high to $90.33 low.
The price is once again moving down, breaking another bullish trend line with support at $95.40. It looks like a replica of the last trend line break, suggesting ETH/USD might trade back towards the $90.00 level in the short term.
A close below $95.00 might escalate the downside move. Looking at the 2-hour chart, Ether price just managed to hold a crucial bullish trend line at $94.00.
If ETH/USD closes below $94.00, it could ignite a sharp decline with a potential for a move towards the all-important $82.00-80.00 support area.
To sum up, there can be a few correction waves in ETH/USD, however the $80.00 pivot holds the key for the current trend in the near term.