ETH/USD Forecast: Back Trading In Range
|Ether price retreated after trading close to yesterday’s highlighted resistance area at $47.50 against the US Dollar.|
|The ETH/USD pair corrected lower, but found support well above the last low of $41.12.|
|It looks like both ETH/USD and ETH/BTC pairs may trade in a range before making the next move.|
Technically, the hourly chart indicators are under divergence, and slowly recovering from the bearish territory.
Ether Price to Gain Momentum?
Yesterday, we analyzed how ETH/USD started an upside move from the $41.12 low. However, it faced continuous offers near $47.5 resistance, which resulted in a downside move.
Similarly, the ETH/BTC pair faced offers above 0.041BTC, and declined below 0.040BTC. An increase in buying interest for Bitcoin resulted in downside pressure.
Looking at the hourly chart of ETH/USD, the pair was down from $47.44 and traded close to the $43.00 support zone where it found a bullish trend line, which prevented additional losses.
The $47.5 resistance also represents the 50% Fibonacci retracement level of the last decline from the $50.82 high to $41.12 low. So, it was a perfect technical level of the pair to complete a wave.
Once the correction was complete, the price declined below $45.00. Ether was able to close above the last swing low of $41.12, signaling a potential surge.
It would be interesting to see whether the price can break $47.50 or not. If it fails, there could be a pennant range formation for the next move. On the other hand, if there is a push above $47.50, the price could attempt a test of all-important $49.00.
The 4-hour chart of ETH/USD clearly highlights the importance of $49. There is a bearish trend line at $48.50-49.00. Also, the previous support at $49.00 may now act as a hurdle.
In my view, we may see ETH/USD trading in a range with support above $42.00 and resistance at $49.00 in the near term before the next move.