Ethereum Price Key Highlights
- Ethereum price made a strong break below a consolidation pattern and showed follow-through with its selloff to new record lows.
- Profit-taking seems to be taking place, opening the possibility of a correction to nearby resistance levels.
Ethereum price appears to be bouncing off its recent lows and might be ready for a quick correction to Fibonacci levels.
Potential pullback points
Using the Fibonacci retracement tool on the latest swing high and low on the 1-hour time frame shows that the pair is closing in on the 38.2% level, which might hold as resistance in a shallow pullback. A larger correction could last until the 61.8% Fibonacci retracement level, which coincides with a descending trend line connecting the latest highs of ethereum price action. This is also in line with a previous support zone at 0.00240BTC.
Stochastic is still moving up, which means that buying pressure is present and that a correction is underway. Once the oscillator reaches the overbought region and turns lower, the selloff might resume and take price down to new lows.
The 100 SMA is still below the longer-term 200 SMA and is moving lower, which means that the ongoing downtrend is likely to stay intact. The 61.8% Fib, trend line, and former support at 0.00240BTC might serve as the line in the sand for any correction moves, with a break above that area indicating that a reversal is underway.
Intraday support level – 0.00190BTC
Intraday resistance level – 0.00240BTC
Charts from TradingView