ETH/USD Forecast: Indecision Time For Ether
|A move below the $40 handle in Ether price against the US Dollar quickly faded with strong bids.|
|The ETH/USD pair is back trading above the $40 support, but remains slightly at a risk.|
|As long as the pair is below the $43, it may find it difficult to extend gains in the short term.|
Technically, the hourly chart indicators mostly point indecision with a minor bearish bias.
Can Ether Price Overcome $43?
In yesterday’s analysis we discussed that if Ether sellers step in, there is a possibility of ETH/USD extending declines below $40.0 against the US Dollar. The ETH/USD pair did slide below $40, but losses were limited.
The pair after trading as low as $39 recovered quickly and moved back above the $40 handle. It is a sign that the price is well supported above the $38 level. However, at the same time, it is facing a crucial resistance around the $42.5 and $43 levels.
The recent bounce from the $39 low found sellers near the mentioned resistance. There is a clear confluence resistance area formed with two bearish trend lines on the hourly chart. The $42.5 level already acted as a barrier once this week.
So, it is safe to say that the price is facing a major resistance just around the $43 level, and it won’t be easy for Ether buyers to overcome it.
On the downside, there is a connecting support trend line formed with current support at $38. If the pair dips from the current levels, it is likely to find support on the downside. At the moment, the highlighted shooting star candle signals a minor dip in ETH/USD.
When we look at the 4-hour chart of ETH/USD, there are a few positive signs. The most important one is a bullish trend line with support at $38. It might play a significant role in the near term.
In my view, the price is well supported on the downside. If the current structure completes in a 3-wave pattern, ETH/USD might retest $43 where sellers could take a stand.