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

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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