ETH/USD Forecast: Upside Limited, More Losses Possible
|Failure to close above $50 ignited a downside move in ETH/USD during the past 2 days.|
|There was a sharp decline in Ether’s price against the US Dollar and Bitcoin towards $44 and 0.0380BTC respectively.|
|ETH/BTC was down by more than 15% from 0.047BTC to 0.038BTC.|
Technically, the hourly chart indicators are moving with good momentum in the bearish territory.
Ether Price Downside Move to Extend?
In the weekly analysis, we saw a major trend line break in ETH/USD on the 12-hour chart.
There was a proper break and close below the range support at $48. The past two sessions were very challenging for Ether, as the price declined heavily and broke the stated range support as well, to trade as low as $43.36.
So, it looks like the highlighted break on the 12-hour chart is real. The last 2 candles look bearish, signaling more downsides in the near term. There was even an attempt to break the 38.2% Fibonacci retracement level of the last wave from the $32 low to $54 swing high.
There is now a connecting bearish trend line formed on the same chart with resistance at $50.20. If there is a correction initiated, ETH/USD may face offers near $50.00-50.20.
The ETH/BTC pair also faced a lot of pressure, as it declined below the 0.045BTC and 0.040BTC support levels to trade towards 0.038BTC.
When we move down to the hourly chart of ETH/USD, the pair is clearly in a short-term downtrend. There was a bullish trend line break at $50 to initiate the decline.
On the upside, there are two bearish trend lines positioned at $47 and $50. I think, the most important one is near $50 since the price might attempt a bounce back from the $45 low.
Overall, it looks like if the price recovers from the $45 low, it could face a strong resistance near $50.