Technically, the 2-hour chart indicators are reaching overbought levels, but with no sign of a major correction.
Ether Price Forms New All-time High
Ether ran up sharply and broke many important resistance levels against both majors – US Dollar and Bitcoin. ETH/USD surpassed $118.00 and traded above the $130.00 level to complete a solid bullish wave structure.
Similarly, the ETH/BTC pair rocketed higher and was able to form a new all-time high above 0.062BTC, overcoming the possibility of a divergence formation.
Yesterday, we saw a three-wave pattern in ETH/USD. As the second leg was completed, a third leg pushed above $130, setting a new all-time high at $134.13.
The pair is currently correcting lower, facing offers near $126.00. It already broke a major bullish trend line at $130.00, signaling the start of a short-term correction.
It may soon test an initial support at $122.00, which is also near the 23.6% Fibonacci retracement level of the last wave from the $108.00 swing low to $134.00 high.
The next supports on the downside are at $118.00 and $108.00, with the latter serving as the most important support, coinciding with the 50% Fibonacci retracement level of the last wave from the $89.00 low to $134.00 high.
Looking at the 2-hour chart of ETH/USD, there is a crucial ascending channel pattern with support at $125.00. As long as the pair stays above $124.00-122.00, there can be a move towards $134.00 or above it.
If there is a break below $122.00, there can be an extension the current correction towards $108.00. The overall trend is bullish with chances of a few short-term corrective moves.