ETH/USD Weekly Forecast: Slow Revival Likely
|Ether price started a downside move after forming a top near $11.87 against the US Dollar.|
|It looks like the ETH/USD is now slowly forming a bottom, and may move higher.|
|On the downside, the most important support remains near $8.50.|
Technically, the 12-hour chart indicators are mild bearish, but pointing a base formation.
Ether Price is forming a base near $9.20-9.50?
During the past few days, Ether price struggled to hold gains against the US Dollar, and slightly moved down. On the other hand, it was seen gaining bids against the Bitcoin, as ETH/BTC traded past 0.0120BTC.
At the moment, the price is mostly consolidating losses incurred recently from the $11.87 high. The price traded lower and tested the $9.00 support area, which is just below the 38.2% Fibonacci retracement level of the last wave from the $5.94 low to $11.87 high.
There is a minor connecting bearish trend line formed on the 12-hour chart of ETH/USD, acting as a resistance and preventing an upside move. An initial resistance on the upside is at $10.0, currently preventing a push towards the highlighted trend line.
On the downside, the most important support area is near $8.50. I highlighted the same area on many occasions, and it still holds a lot significance. It also represents the 50% Fibonacci retracement level of the last wave from the $5.94 low to $11.87 high.
So, the 12-hour chart suggests that the ETH/USD pair remains supported near $9.00 and $8.50 with resistance on the upside near $10.00 and $10.20.
When we have a look at the 2-hour chart, there is a flat pattern forming. It is currently acting as a recovery medium for the pair, and taking it higher. However, there is a clear resistance near $10.00.
There is a chance that the price may continue to slowly grind higher towards $10.00. Later, if the market sentiment improves and the price breaks past $10.00, then there can be additional upsides towards $10.50-10.60.