Technically, the 2-hour chart indicators are correcting lower in the bullish territory.
Ether Price Analysis
Yesterday, we discussed that ETH/USD is trading in a bullish zone and it could continue to move higher toward $220.00 or $225.00. The pair did climb higher and traded to a new monthly high at $223.86 before starting a downside correction.
ETH/BTC settled above the 0.0330BTC level and it is currently consolidating gains. The pair may correct a few points in the short term toward 0.0320BTC before it climbs higher once again.
Looking at the 30-minute chart of ETH/USD, the pair rallied above the $215.00 and $220.00 resistance levels. A new monthly high was formed at $223.89 and later the price corrected lower. Ether declined and traded below the $220.00 support and a bullish trendline.
The price even declined below the 23.6 percent Fibonacci retracement level of the recent upside from the $208.43 low to $223.89 high. However, there are two strong supports positioned near $217.00 and $215.00.
The 2-hour chart also indicates the importance of the $217.00 support and a bullish trendline around the same area. Therefore, Ether’s price is likely to bounce back above $220.00 as long as there is no 2-hour close below the $217.00 support.
Should buyers gain pace above the $220.00 resistance, the price will most likely break the $223.89 high in the coming sessions. Conversely, a downside break below $217.00 could push the price toward the $215.00 support and the 50 percent Fibonacci retracement level of the recent upside.
The current technical structure on the 2-hour chart suggests a short term bearish wave before Ether starts a fresh upward move above $220.00.