ETH/USD Weekly Forecast: Is This ‘A’ Correction?
|Ether price after an upside ride towards $12.00 against the US Dollar found resistance, and started moving down.|
|The ETH/USD pair broke a couple of support levels on the way down like $11.00 and $10.20.|
|The pair is currently forming a pennant looking pattern on the 2-hour chart for the next break in the near term.|
Technically, the 12-hour chart indicators showing a shift of momentum towards bearish, but slowly looing grip.
Ether Price Crucial Support Levels
This past week was an eventful period for Ether price, as it sharply moved higher towards $12.00 against the US Dollar. Moreover, the ETH/BTC pair also gained traction for a recovery above 0.010BTC.
Later, the upside move in Ether price exhausted, and ETH/USD made a short-term top near $11.87. The pair started a downside move, and traded below the 23.6% Fibonacci retracement level of the last leg from the $5.94 low to $11.87 high.
It was the first sign that the pair may have started a correction. The downside move was such that the pair once broke the $10.00 support area and moved towards the $9.00 handle.
However, there was no daily close below $9.00, which is a positive sign that the trend may have not changed for Ether price. The price at the moment forming a consolidation, and it looks like a pennant pattern is forming on the 2-hour chart of ETH/USD.
The pair is comfortably placed above the $9.50 level, and holding the downside move. As long as the price is above the stated level, there are chances of an upside break going forward.
The 12-hour chart of ETH/USD suggests that the pair is above a couple of important support levels. The crucial one is around the $8.50 area, which can be considered as a monthly pivot. As long as the price is above the stated support, the current wave can be considered as a part of the correction. Only when there is a break below $8.50, there are possibilities of a trend change.