Ethereum (ETH) Price Correcting Gains, Should U Buy Dips?
- ETH price extended gains above the $215 resistance area against the US Dollar.
- The price is currently correcting lower and is trading below the $212 support area.
- There was a break below yesterday’s highlighted bullish trend line with support near $211 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to correct further lower towards the $200 support area in the near term.
Ethereum price is currently correcting gains versus the US Dollar and bitcoin. ETH price might soon test the $200 support area before it starts a fresh increase.
Ethereum Price Analysis
Yesterday, we saw a solid upward move in ETH price above the $200 resistance against the US Dollar. The price even broke the $210 level and settled well above the 100 hourly simple moving average. As a result, the price extended gains above the $215 level and posted a new monthly high near $218. On the other hand, bitcoin price remained in a bearish zone and settled below the $10,200 level.
At the moment, Ethereum is correcting gains below the $212 support area. Additionally, there was a break below the 23.6% Fib retracement level of the upward move from the $188 low to $218 high. More importantly, there was a break below yesterday’s highlighted bullish trend line with support near $211 on the hourly chart of ETH/USD. It opened the doors for more downsides and the price is now trading below $210.
An immediate support on the downside is near the $204 level. It coincides with the 50% Fib retracement level of the upward move from the $188 low to $218 high. However, the main support is near the $200 level and the 100 hourly SMA. Moreover, the 61.8% Fib retracement level of the upward move from the $188 low to $218 high is also near the $200 area.
Therefore, the price is likely to find support if it corrects lower towards the $204 or $200 levels. On the upside, there is a short term resistance forming near the $210 level and a connecting bearish trend line on the same chart. If there is an upside break above $210, the price could resume its upward move in the near term.
Looking at the chart, Ethereum price is clearly correcting lower below the $210 support area. It seems like the price might revisit the $200 support area and the 100 hourly SMA. Once the current correction phase is complete, the price could start a solid upward move.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $204
Major Resistance Level – $212
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Aayush Jindal, Khareem Sudlow