Technically, the 4-hour chart indicators are currently near their midlines in the bullish territory.
Is Ether's Price Correction Over?
Yesterday, a correction wave was initiated in ETH/USD as the pair moved below the $720.00 and $700.00 support levels. The pair failed to hold the $680.00 support level and traded toward $600.00.
Similarly, ETH/BTC faced selling pressure and was not able to hold the 0.0400BTC support. The current price action is negative since bitcoin's price has started a new uptrend, and it looks poised for further upsides versus the US dollar.
Let’s start with the 4-hour chart of ETH/USD, which suggests that the pair faced a strong selling interest around $750.00 and moved down sharply. The pair declined below the 23.6 percent Fibonacci retracement level of the last leg from the $406.94 low to $758.69 high.
However, the downside move was protected by a major bullish trendline with current support at $630.00. It seems like Ether buyers succeeded in defending further losses below $610.00. The price tested the 38.2 percent Fibonacci retracement level of the last leg from the $406.94 low to $758.69 high and recovered.
Below the trendline support and $610.00, the next crucial support is near $500.00. Dropping down to the hourly chart of ETH/USD, the pair is showing positive signs of a recovery above $650.00.
There was a break above a bearish trendline at $650.00, which has cleared the path for further gains in the near term. On the upside, Ether’s price is facing a key resistance at $700.00. A successful close above $700.00 will most likely push the price toward $750.00.
Overall, there are many signs which suggest that a correction from $758.69 is over in ETH/USD. However, the pair needs to move above $700.00 to gain bullish traction.