ETH/USD Weekly Forecast: Buyers Losing Control
|Ether price downside extended from the $52.80 high against the US Dollar.|
|The ETH/USD pair declined sharply and traded close to the $30 handle where it found support.|
|There is a crucial support base near $30, which holds a lot of importance for the current bullish trend.|
Technically, the 12-hour chart indicators are signaling exhaustion of the bullish trend.
Ether Price to Hold $30?
This past week was a crazy ride for Ether, as the price managed to pop above the $50 handle against the US Dollar. It also managed to trade above the 0.040BTC resistance against Bitcoin.
Overall, the market sentiment was very positive, and helped buyers take the price higher. However, they struggled to take carry the momentum further above $53. There was no proper close above $50. As a result, the price started a correction.
There was a sharp decline initiated as the price traded below $45, $40 and then $38. The price also failed to bounce from the 61.8% Fibonacci retracement level of the last wave from the $32 low to $52.80 high.
The price tested the full extension and moved close to the $30 handle. The 2-hour chart of ETH/USD clearly suggest a slide with a descending contracting triangle pattern. The price at the moment is attempting a bounce from the $32-31 support area.
Ether is facing resistance near the triangle upper trend line at $37. Moreover, the 38.2% Fibonacci retracement level of the recent decline from the $52.80 high to $31.26 low is also around the $37-38 resistance zone.
Overall, it looks like the price has a good support around $32, and it might attempt a move above the $40 handle one more time.
Looking at the 12-hour chart of ETH/USD, the pair is currently trading near a major bullish trend line with support above $32. So, it is quite clear that the $32-20 support area is very important for Ether price at the moment.
It might bounce back towards $40 or even break it. On the other hand, a break below $30 might call for a change in the trend.