Ethereum Price Technical Analysis – ETH/USD Correction After Ride?

Key Highlights

• There was a nasty spike up in ETH price above $56 against the US Dollar before finding resistance at $58.08.
• There was a short-term bullish trend line with support at $57.30 on the hourly chart (ETH/USD, data feed via SimpleFX), which was broken recently.
• It looks like the price may correct lower, and test the $55.60 or $55.00 support levels in the near term.

Ethereum price surged higher towards $58 against the US Dollar, and now ETH/USD is preparing for a correction towards the $56-55 levels.

Ethereum Price Upside Ride

Finally, there was a break above the $53.60 resistance in ETH price against the US Dollar. The price gained a lot of strength, and was able to break the $54.50 resistance area. It opened the doors for a nasty move up, as the price broke the $56 and $57 resistance levels. A new weekly high was formed at $58.08 where the price faced resistance and started a downside move.

It looks like a correction is initiated, as the price has now moved below the 23.6% Fib retracement level of the last wave from the $53.22 low to $58.08 high. The most important move was below a short-term bullish trend line with support at $57.30 on the hourly chart of ETH/USD. It has opened the doors for an extended correction towards $56. The next support could be near the 38.2% Fib retracement level of the last wave from the $53.22 low to $58.08 high.

Let us see how the price trades in the near term if it tests $56. Any further declines may call for a complete test of the 50% Fib retracement level of the last wave from the $53.22 low to $58.08 high where buyers might appear.

Hourly MACD – The MACD is strongly in the bullish zone.

Hourly RSI – The RSI is correcting from the overbought levels.

Major Support Level – $56.00

Major Resistance Level – $58.00

Charts courtesy – SimpleFX

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