Ethereum (ETH) began a recovery this Thursday (26), after operating in decline the previous day.
However, it is not yet possible to say whether the current jump is a corrective movement or a continuation of the upward trend that began last week.
Ethereum seeks recovery
ETH had been trading higher since September 18, when it returned to trading within a rising wedge pattern. However, the asset was unable to overcome the resistance of the pattern, starting a decline after forming a high at $2,700.
However, the $2,550 level has acted as support, preventing a retest of the wedge support line so far. This move can be interpreted as bullish for the future trend.
Ethereum (ETH) chart on TradingView
However, this high is still seen as a corrective move rather than a resumption of the uptrend. This is seen by plotting a Fibonacci retracement level of this latest downward move. ETH is currently trading near the 0.5 retracement level.
Read more: Ethereum ETFs – Understand what they are and how they work
Ethereum (ETH) chart on TradingView
Therefore, as long as ETH does not form candles above the 0.618 level at $2,645, the short-term trend remains bearish. If it breaks above this level, the asset’s price could rise towards the wedge resistance line, currently at $2,750.
On the other hand, failing to do so would indicate a drop to $2,500.
The article Ethereum (ETH) Forecast: How the Price Could Behave Today? was first seen on BeInCrypto Brazil.
