Ethereum recently broke out of its symmetrical triangle consolidation pattern to the upside, signaling that a climb was underway. However, price hit resistance around the $225 mark and started a correction.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the broken resistance and is also in line with the moving averages. Price is currently testing the 38.2% Fib level, which might also hold as support and push ethereum back to the swing high and beyond.

The 100 SMA is below the longer-term 200 SMA for now, indicating that the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume. However, the gap between the indicators has narrowed to reflect slowing bearish pressure and a possible bullish crossover.

Stochastic is heading lower but also dipping into the oversold region, also reflecting exhaustion among sellers and a possible return in bullish momentum. RSI is just halfway through on its move lower, though, so bears could stay in control until oversold conditions are met.

Ethereum and most cryptocurrencies have been on a positive run in the past week on account of improving sentiment and expectations for strong institutional inflows. Although the Morgan Stanley report focused on bitcoin with its bullish outlook, ethereum and its peers appear to have picked up on the rallies as well.

However, it’s also understandable that traders are quick to book profits, hence the bounces off key levels. The FOMC announcement may have also been a factor as expectations for a December hike were kept in play and buoyed the dollar across the board. Apart from that, the prospect of higher borrowing costs also ate into risk appetite and weighed on riskier assets like crypto.