The ETH/USD pair after setting a new weekly high began to correct lower, and it looks like the next leg lower in currently underway.
Ether price after a surge towards the $12.30 level against the US Dollar found offers and started a correction phase.
There is likely a short-term top in place for a minor downside in the ETH/USD pair.
The last 24-hours chart of the ETH/USD pair points a break to open the doors for a correction wave.
I think the recent correction can be seen as a chance to buy as long as the all-important $11.00-$10.80 support area is intact.
ETH/USD Is Buy Dips?
The Ether succeeded in overcoming selling pressure against the US Dollar yesterday, and traded as high as $12.32. Currently, the ETH/USD pair is struggling to settle above the $12.00-20 levels, which poses a threat of a short-term correction.
If we look at the last 24-hours chart of the ETH/USD pair, then it broke a bullish trend line signaling a start of a correction wave. There was also a double top pattern formed on the same chart, which was one of the reasons for a downside reaction.
Ether price already completed 1st wave and tested the $11.60 level where it found bids. I think there is a chance of a 3-wave correction that may take the price towards the $11.00-20 levels, which holds a lot of importance for ETH/USD in the near term.
The last 7-days chart of ETH/USD clearly suggests why the $11.00-$10.80 levels are important. The stated levels acted as a resistance earlier and may provide support if price moves down from the current levels.
So, I think buying dips is a good option in ETH/USD as long as it remains above the mentioned support area.
Important Resistance Levels
$12.00 and $12.30
Important Support Levels
$11.60 and $11.00
The RSI indicator has moved below the 50 level, signaling a short term trend change.
The MACD is in the bearish zone, calling for an extension of the current move.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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