Ether Price Pullbacks Likely To Be Shallow
|Ether price continued to correct lower against the US Dollar after creating a high at $13.36 yesterday.|
|The ETH/USD pair broke a short-term bullish trend line on the hourly chart, which opens the door for a move towards $13.00.|
|It looks like yesterday’s highlighted support area at $13.10 may fail to hold the downside.|
Technically, the hourly chart suggests a break, and suggesting a further correction in Ether price.
ETH/USD Correction and Support
There were reports that Ethereum Network faced computational DDoS Attack, which increased pressure on Ether buyers. There was a downside move in Ether price against the US Dollar and Bitcoin. ETH/USD broke a couple of important support levels to open the doors for more declines.
On the other hand, there was another news, which impacted the market sentiment. OPEC agreed to curb oil output to 32.5-33 million bpd, which caused a stir in the oil and other commodities. It impacted the market sentiment to a certain extent, and also effected the cryptocurrencies like Bitcoin and Ether.
Looking at the technical front, there was a bullish trend line on the hourly chart of ETH/USD, which was broken during the recent move. Moreover, the pair also cleared the 38.2% Fibonacci retracement level of the last wave from the $12.83 low to $13.36.
It looks like the price may not hold the $13.10 support and could trade towards $13.00 at least. It is where the Ether bulls may appear and attempt to protect the downside move. When we look at the 4-hours chart, the price made a topping pattern at $13.36.
So, there is a chance of further declines. In that situation, the highlighted support area at $12.50 may come into the picture. In my view, the short-term bias may turn to bearish, but in the medium term, ETH/USD remains supported.