Ethereum Lurks in Correction Phase

Ethereum recently underwent a sharp price displacement, falling to the demand zone at $2195.0. This aggressive price crash was characterized by a swift and one-sided movement, with each daily candle in the bearish swing deepening the decline. Notably, there was no upward movement throughout the entire bearish swing.

 

Once the price reached the $2195.0 demand level, the dip halted, and a prominent lower shadow formed beneath the last daily candle, signalling the beginning of a potential recovery. However, the subsequent price ascent has been slow, indicating a lack of momentum. This sluggish price action suggests Ethereum has entered a correction phase, typically observed following an impulsive price move.

Ethereum Key Levels

• Demand Levels: $2195.0, $1995.0, $1785.0
• Supply Levels: $2814.0, $3086.0, $3541.0

Indicators Overview

The correction began after Ethereum tested the support zone at $2195.0. The Stochastic indicator showed the market was oversold at this level and has since started a gradual rise toward the overbought region. Once the Stochastic reaches the overbought area, it is likely that the bullish retracement will complete.

Meanwhile, the Moving Averages (Periods 9 and 21) remain above the current price, indicating that the overall market is still in a downtrend despite the ongoing bullish retracement. As the correction phase progresses, there is an expectation that the swing low of $2190.0 will be swept once the impulsive phase resumes.

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