ETH/USD inside a falling wedge losing 4.43% in a day

The price of Ethereum has been correcting inside a falling wedge from yesterday’s price at $127.3 and has lost 4.43% until now as the crypto is being traded at $121.7 on FXOpen at the moment.

On the hourly chart, you can see that the price broke out from the falling wedge today and has now come down to its support line and the horizontal resistance of the previous range for a retest of support.

If the support is present we could expect further increase above the 0.5 Fibonacci level. But as the wave structure implies we are likely now going to see further retracement as the 5 waves impulsive move the upside ended.

The expected retracement would be the second wave of a higher degree impulse so I wouldn't expect it to go more than 70% from the last high, which would bring the price target for the retracement to around $111 area to the horizontal purple line.

Like in the case of Bitcoin this expectation is based on the count in which we are seeing the start of the second impulsive move after the Minor correction ended. So if the price continues moving lower than that it would mean that the current upswing was a prolongation of the Minor correction and that another low should be expected before the start of another impulsive move.