The leading cryptocurrency Bitcoin struggling to surpass the $38,000 mark and delayed approval from the U.S. SEC for some Bitcoin spot ETF has led to a correction in ETH price after hitting a monthly barrier of $2137. Within a fortnight, the coin price has plunged 6% to currently trade at the $2008 mark.
However, this correction could be a minor pullback before the Ethereum price takes the next recovery leap, indicating the ETH price prediction has a bullish outlook for the near future
Source- Tradingview
The ongoing correction in the Ethereum price can be followed using a downsloping resistance trendline of the 4-hour time frame chart. The coin price reverted several times from the overhead trendline reflecting the market sentiment of selling on a bullish bounce.
Until this trendline is intact, the ETH price may prolong its ongoing downward trend. However, as per the Fibonacci retracement tool, this pullback is still above the 50% retracement level, which is considered healthy for bullish momentum and carries a long-term recovery.
Thus, the market participants bullish on Ethereum should wait for a breakout above the resistance trendline to get better confirmation of trend continuation. The post breakout would surge the prices 12% higher to hit the upper resistant trendline of the long-coming wedge pattern around $2200-$2500.
Technical indicators:
MACD indicator: A bearish crossover between the MACD and signal lines projects as a correction trend in action.
EMA: the 20-day EMA slope is offering strong pullback support to the ETH price
A look at the Daily time frame Chart shows the Ethereum price has been carrying a steady uptrend under the influence of a rising wedge pattern. As the anticipated rate is likely to reach the upper resistance of the pattern, the coin price may witness an intense surge in selling pressure around the $2250 mark.
The historical data shows a retest to the upper trendline has often resulted in a significant correction within the wedge pattern. Thus, for better confirmation of a bullish trend, the buyers must surpass this overhead trendline.
Under ideal conditions, the wedge pattern breakout could lead the ETH price rally to $3400.
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