Ethereum price analysis: Correction finally underway
Ethereum price analysis indicates that an interim price top may have been established last week. Watch out for a decline towards the $200.00 to $195.00 support region.
Ethereum has finally started to correct lower alongside the broader cryptocurrency market, after the second-largest cryptocurrency met strong resistance from the $290.00 level.
Ethereum price analysis shows that a bearish reversal pattern and bearish MACD price divergence are pointing to an upcoming decline towards the $195.00 level.
ETH/USD medium-term price trend
Ethereum has finally started to trade lower after falling just short of the psychological $300.00 resistance level.
At this stage, a downside correction is healthy for the ETH/USD pair, given that the cryptocurrency has gained over thirty percent so far this month.
Ethereum technical analysis shows that a bullish inverted head and shoulders pattern is signalling more gains towards the $360.00 level over the medium-term.
The daily time frame shows that the neckline of the pattern is located around the $238.00 level, and remains a pivotal area for the ETH/USD pair.
Traders will likely use any pullback towards the $238.00 to $200.00 area as a buying opportunity, in anticipation of further medium-term gains.
ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that a bearish head and shoulders pattern has been triggered into action.
The neckline of the bearish head and shoulders pattern is located around the $255.00 level, and projects an upcoming decline towards the $215.00 level.
It is also noteworthy that substantial amounts of bearish MACD price divergence are present across the lower time frames, and extends down towards the $195.00 level.
Any upside correction towards the $275.00 to $280 technical area may be seen as a short-term selling opportunity.
Ultimately, short-term traders need to establish that the ETH/USD pair is no longer making bullish weekly higher highs before considering selling the cryptocurrency again.
ETH/USD technical summary
Ethereum technical analysis points to more short-term losses for the cryptocurrency while price holds below the $255.00 level. Moves back towards the $290.00 level may be seens as a selling opportunity.