Ether Prepares For A Price Correction: Market Analysis

Ether prepares to start a price correction according to the recent rally and the technical patterns that can be seen across the charts so let’s find out more in today’s Ethereum news.

Ether prepares for a bullish impulse after it saw a price surge over 40 percent since the beginning of the year and this cryptocurrency went from trading at a low of $126.40 to a high of $179 on January 18. Right after the peak, ETH retracted to about 10 percent and has been contained in a narrow trading range ever since.  The low levels of volatility that were seen since then, suggest that a major price movement is coming soon.

Based on the TD indicators, the next major price movement could be to the downside since this technical index recently showed a selling signal of ETH’s 3-day and 1-day chart in the form of a green nine candlestick. A bearish signal forecasts that it will pull back to the one to four candlesticks at the start of the new downward countdown. A red two candlestick trading below the preceding candle could be perceived as a confirmation of the bearish formation. In the meantime, a head and shoulders pattern seems to be developing on the ETH 4-hour chart and this technical formation shows a momentum reversal to the bearish side. Moving below the $165 level could start a sharp decline and this downtrend will have to be confirmed by a large spike in the sell orders.

The bearish pattern projects a ten percent plunge that could take the price of Ether to $147. This target level is determined by measuring the distance between the head and the neckline thus adding it to the breakout point. The Fibonacci retracement indicators also prevail hitting a bearish target and the certain levels of support that Ether will have to break first.

Finishing below the 23.6% Fibonacci retracement level, could be followed by a move down to the 38.2% Fibonacci retracement level sitting at $15 so if ETH is able to break through the significant level of support and a move to the 50% Fibonacci retracement level will become much apparent. A sudden increase in the demand for Ethereum could jeopardize the bearish outlook and if this crypto moves above the high of $179, Ether could advance to $191.