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, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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