Ether Price Ready To Challenge $13.00 Support
|Ether price extended the correction pattern against the US Dollar, and traded below $13.50.|
|Yesterday, I highlighted a short-term top in the ETH/USD pair, which did well and ignited a correction.|
|The pair is now heading towards a major support area of $13.20-$13.00.|
Technically, the 4-hours chart points that the $13.00 handle is a major support and may protect the current downside move.
ETH/USD Approaching Support
Ether sell-off accelerated during the past two sessions, as buyers lost control against the US dollar and Bitcoin. There was a break below the $13.50 support in ETH/USD, and ETH/BTC traded below 0.0220BTC. Yesterday, I stated that there is a chance of a short-term top in the ETH/USD pair, and also pointed out a correction wave.
The pair did trade lower, and broke the $13.50 support to extend the correction. There is a descending channel pattern formed on the hourly chart of ETH/USD, which is acting as a catalyst for the current downside move.
The pair has already retraced most gains and testing the 50% Fibonacci retracement level of the last wave from the $12.34 low to $14.31 high. The most important support is near $13.20-00, which also coincides with the channel lower trend line.
When we have a look at the 2-hours chart, then there are a couple of things to note. First, there is a bullish trend line formed (yellow), which is meeting at $13.00. Second, there is a major support zone around the stated level.
It was a resistance earlier for the Ether buyers and now it may provide support in the short term. So, if the pair continues to trade lower from the current levels, there is a chance of buyers taking a stand near $13.20-00. It represents a major technical level, and I will be very surprised if sellers break it easily.