Technically, the 6-hour chart indicators are showing signs of trend exhaustion.
Ether Price Correction to be Limited?
We saw a solid upside move in ETH/USD recently as the pair moved above the $750.00 level and formed a new all-time high at $758.69 before starting a correction.
ETH/BTC also moved nicely and is currently consolidating gains above the 0.0400BTC support. However, there are a few short-term topping signs from the 0.0450BTC level.
To understand the current price action from the $758.69 high, let’s start with the 2-hour chart of ETH/USD. The chart suggests that the pair is struggling to gain momentum above the $750.00 level.
It attempted an upside break on three occasions but failed. As a result, there was a downside reaction below the 23.6 percent Fibonacci retracement level of the last wave from the $600.00 swing low to $758.69 high.
At present, the pair is attempting a downside break below a major bullish trendline with support at $680.00-700.00. A 2-hour close below $680.00 and the 50 percent Fibonacci retracement level of the last wave from the $600.00 swing low to $758.69 high could be significant.
In the mentioned scenario, Ether’s price will most likely extend declines toward the last swing low of $600.00. Moving up to the 6-hour chart, there are many signs of trend exhaustion above $750.00. The pair is currently consolidating with a few signs of a short-term top.
On the flip side, should ETH/USD bounce back and move above $720.00, it could avert any further declines in the near term. The overall medium term is bullish, but there may be pullbacks toward $650.00 or even $600.00 if Ether’s price closes below $680.00.