Technically, the 30-min chart indicators are correcting overbought levels.
Ether Price Facing Resistance near $245.00-250.00
In yesterday’s monthly forecast of ETH/USD, we saw a contracting triangle pattern on the 2-hour chart with resistance at $234.00.
The pair gained traction and was able to move above the triangle resistance at $234.00. It opened the doors for a test of another important resistance at $245.00-250.00.
A new all-time high was formed at $248.27 where the pair faced strong offers. The $245-250 area is a crucial Fibonacci extension zone, and a break above it won’t be easy. There were two attempts to clear the $248.27 level, but buyers failed to take advantage, resulting in a downside move.
ETH/USD started correcting lower, and moved below the 23.6% Fibonacci retracement level of the last wave from the $234.00 low to $248.00 high.
There is a declining channel pattern forming on 30-min chart with support at $240.00, which also coincides with the 50% Fibonacci retracement level of the last wave from the $234.00 low to $248.00 high.
If the pair surpasses the $240.00 support, it could result in further declines and possibly a retest of $234.00 (support 1). Below 234.00, the next significant supports are $232.00 and $230.00.
Moving on to the 2-hour chart of ETH/USD, the pair clearly succeeded in breaking a major barrier at $230.00-235.00, which may now act as a support.
On the downside, there is a critical bullish trend line with support at $230.00. It seems like the current correction wave is likely to find support anywhere between $230.00-235.00.
Above $248.00 on the other hand, Ether price will likely accelerate its advance and rally up to $255.00-260.00 initially, possibly testing the $270.00 region next.