Technically, the hourly chart indicators started correcting from the extreme overbought conditions.
Ether Price Approaching Support
In the last couple of analyses, we discussed the chances of ETH/USD testing the $300.00 level. The pair recently gained heavy bullish momentum and took out strong offers at $300.00 to trade above $310.00.
Similarly, Ether was able to gain traction against bitcoin as the ETH/BTC pair moved above key resistance levels of 0.080BTC and 0.085BTC.
There was a solid buying interest for Ether, taking ETH/USD as high as $314.58. The pair made a short-term top near the stated level and started correcting lower towards $280.00-290.00.
There was a drop below the 23.6 percent Fibonacci retracement level of the last leg from the $254.10 low to $314.58 high. The pair even moved below a bullish trendline at $300.00 on the hourly chart.
It seems like the pair is now approaching another important support area at $280.00-290.00. There is a bullish trendline positioned along with the 38.2 percent Fibonacci retracement level of the last leg from the $254.10 low to $314.58 high.
Looking at the 4-hour chart of ETH/USD, there was a break above a rising channel at $280.00 which might act as a support if the pair continues to move down. Below $280.00, the next major support sits at $275.00.
The most important support for the current bullish trend is near $250.00 in the form of a trendline on the 4-hour chart.
To sum up, the current price action is corrective in nature and any major dips in ETH/USD remain supported on the downside above $280.00 and $275.00. The pair would resume its bullish trend above $300.00 once the current correction is complete.