ETH/USD Forecast: Crucial Support is Nearby
|Ether faced continuous selling pressure, resulting in a decline towards $49 against the US Dollar.|
|Yesterday’s highlighted double top pattern was successful, as the ETH/USD pair fell towards $50.|
|ETH/BTC failed to hold the 0.050BTC psychological level, and traded towards 0.047BTC.|
Technically, the hourly chart indicators started recovering after testing oversold levels.
Ether Price Remains Supported?
A firmer dollar ignited a downside reaction in Ether’s price during the past two sessions. Both ETH/USD and ETH/BTC were pressured, but the current moves cannot be considered as a trend change.
Yesterday, we saw a double top pattern near $53.70 on the hourly chart, and anticipated a downside move below the neckline support at $52.00. The price did move down, and declined towards $50.00.
It not only tested the $50.20 support zone, but moved below $50.00. The price traded as low as $48.97 where buyers emerged. It found support in front of the 55 and 100-hour SMAs, but was unable to fully breach $50.00.
At the moment, ETH/USD is recovering, but likely to face resistance near $51.50-52.00. In my view, the broken neckline support at $52.00 might act as a hurdle. Also, there is a bearish trend line formed on the hourly chart with current resistance at $51.50.
The $51.50 barrier also coincides with the 50% Fibonacci retracement level of the last decline from the $53.71 high to $48.997 low. So, if the pair continues to move higher, it could face resistance near $51.50 and $52.00.
On the downside, an initial support is at $49.00, but the important one is near the monthly pivot at $48.00. When we look at the 4-hour chart of ETH/USD, it looks like the pair has formed a crucial consolidation phase.
On the upside, the range resistance is near $54, and on the downside, support lies at $48.00. That’s why I think, even if the price declines further, it remains supported for a bounce back towards $52.00 or even $53.00.