Technically, the hourly chart indicators are moving away from the overbought levels, signaling a short-term correction.
Ether Price Breakout Levels
In yesterday’s analysis, we saw a significant rejection pattern in ETH/USD on the hourly as well as the 4-hour chart. Both patterns signaled a reversal, and the pair was able to bounce back.
The upside move was very strong, as the pair broke the 61.8% Fibonacci retracement level of the last decline from the $96.10 high to $82.99 low.
Once there was a break above the $92.00-92.50 resistance, Ether price gained momentum and soared above the $95.00 level. A new weekly high was formed at $97.87 before the price started a short-term correction.
Looking at the hourly chart, the pair has started a downside corrective move and may soon test a key bullish trend line at $93.00. The same area acted as a hurdle for buyers earlier, and now may provide support.
Furthermore, the $93.00 level coincides with the 23.6% Fib retracement level of the last upside from the $82.99 low to $97.87 high. It won’t be easy for ETH/USD to break past $93.00. If it succeeds, the $90.00 swing support may again come into the picture.
The 4-hour chart of ETH/USD points a crucial barrier for further gains at $97.00-98.00. It is basically clearing a major resistance before testing $100.00 and attempting a break above it.
The current H4 candle is super bullish, but it won’t be a cake walk for buyers if they are looking to clear $98.00. In my view, there can be a short-term correction towards $93.00 before Ether makes an attempt to clear $98.00.