A strong correction could reach the 50% Fibonacci, and the drop could extend to the area around USD 1,300. The price could look for resistance at USD 2,928 before falling back, and there could be a bullish transition.
After experiencing highly volatile and bearish days, the crypto asset market has cooled off a bit. Ether (ETH) is taking the opportunity to catch a breather and may turn more bullish in the coming days. However, the ETH bulls still have to face obstacles before claiming victory.
Ether is trading at around USD 2,580 and has accumulated a 7.2% gain in the last seven days. Its daily trading volume is above USD 8.93 billion, and its market capitalization is about USD 307.95 billion, according to CoinGecko.
Although some experts consider the current gains the possible bottom, nothing seems to signal that the bears have relinquished control.
Analyst John Wick pointed out that there is a background pattern but that it is still necessary to wait for BTC to recover more. The bullish signal of Ether would thus be relevant since the price of the pioneering cryptocurrency always sets the tone in the market.
CryptoAmsterdam, another crypto analyst, is not very confident about the recent recovery in the ETH price. Although he thinks there could be a broader rally in the near term, he does not rule out a false breakout and a return to the bearish sideways range.
Ether Is Bullish in the Long Term, but Has Not Resumed That Trend Yet
The monthly ETH/USDT chart shows a clear bullish direction that is largely intact.
Right now, Ether seems to be making a necessary pullback after a big bullish rally in previous months.
The drop in the price of ETH has made it touch the 18-period SMA and a support zone between USD 1,800 and USD 2,200.
Ether is already rejecting low prices, which could signal that the pullback is ending. However, there are no indications yet that there will be a confirmation.
A strong correction, which could reach 50% Fibonacci, is underway. The retracement zone that Ether is touching could serve as a point to resume the previous uptrend. However, if it loses it, which is unlikely at the moment, the drop could extend to the area around USD 1,300.
What Could Happen to Ether in the Short Term
The daily chart reveals that the bears are still in control of the market in the short term. The recent bullish intention of Ether could be just a break to fall back.
Currently, the runway is clear to USD 2,000, where Ether could start looking for a short-term trend reversal.
For now, the price could look for resistance at USD 2,928 before falling back. If Ether fails to hit a new effective lower low, there could be a bullish transition ahead.
Although Ether seems to be resuming its uptrend, it still has to wait for Bitcoin to recover further. When the pioneering cryptocurrency starts to lead the rest of the market higher, ETH could accumulate more significant gains.
By Alexander Salazar
