Technically, the hourly chart indicators are correcting the overbought levels, but remain well in the bullish territory.
Ether Price Correction and Bounce
In Yesterday’s analysis, we discussed that a close above $300.00 might negate the bearish bias. The pair did break the $290.00-300.00 resistance area and traded with a lot of positive signs.
The best part was a close above an important bearish trend line at $280.00 on the 4-hour chart. There was an H4 close above $290.00, which is a bullish sign.
Additionally, the pair cleared the 50 percent Fibonacci retracement level of the last decline from the $378.00 high to $209.00 low. It means that the last correction is over and the pair should resume its larger trend.
The price traded as high as $321.89, where the hourly RSI moved into the overbought levels and attracted sellers. There was a failure to break the 61.8 percent Fibonacci retracement level of the last decline from the $378.00 high to $209.00 low.
A short-term correction wave is initiated and the price moved below a bullish trend line at $320.00 on the hourly chart. The price is currently testing a key broken resistance at $280.00-290.00 and the 50 percent Fibonacci retracement level of the last wave from the $255.00 low to $321.00 high.
Any further declines could take Ether’s price towards $260.00, which is the next major support. There are high chances of ETH/USD holding the $280.00 support.
On the upside, an initial resistance is $315.00 followed by the last high at $321.00. The overall trend is back bullish and buyers are likely to hold losses in the near term.