ETH recently entered a correction phase and has been trading within a descending wedge pattern for the past 2 days. However, it managed to break above its descending support line early this morning on the 1-hour chart.
Ethereum recently peaked at $3581 after the start of a strong bull run in mid-March, allowing it to bounce back from price levels below $2,600. It has since registered a significant price correction and is trading at $3,250 at the time of this press. Its 1-hour chart is showing that price correction for the past 2 days has been confined within descending support and resistance lines.
ETH managed to break the morning descending resistance which is due to rise above the day’s low of $3,143. If the price action is still in a correction phase on the 1-day chart, then the price should experience resistance at the $3,270 price level which is the support area tested earlier.
The $3,300 price level is also a good candidate for a reversal as it aligns with the 0.27 Fibonacci level from the day’s high to the day’s low. A further downside correction could place the next bullish retracement near the $3,000 price level which has historically been a support and resistance area.
What can technical indicators for ETH tell us about its price direction?
The 1-hour and 1-day charts of ETH are showing that a price correction has begun after the RSI and MFI reached oversold conditions. However, a bullish retracement is currently showing that it was oversold on the 1-hours chart but bounced back after hitting the mid level (50) of the RSI on the 1-day chart.
The MFI on the 1-Day chart was still above 50 at the time of this press, while on the 1-Day charts recorded inflows, a sign that it is still favoring a bullish recovery. The on-chain side of things shows that Net Transfer Volume across forms/exchanges fell slightly from April 4 to April 5. It has also increased significantly over the past 24 hours, which reflects the current price action of ETH.