ETH/USD Forecast: Ether Holding Crucial Support
|Ether price recovered a few points against the US Dollar, as the NFP report in the US failed to meet the forecast.|
|It looks like the ETH/USD pair is forming a double bottom pattern near the $41.20 level.|
|There was no major upside in ETH/BTC, as Bitcoin price remains elevated.|
Technically, the hourly chart indicators started moving away from the bearish territory and reaching their mid-lines.
Ether Price Forming a Double Bottom?
Yesterday Ether price made an attempt to trade above the $45.10 resistance against the US Dollar, but failed. A crucial bearish trend line with resistance near $45.10 acted as a perfect barrier for the ETH/USD pair, resulting in a downside move.
However. the downside move was prevented around the $41.50 level. There was no test of the last swing low at $41.12, which is a positive sign.
As the pair recovered, Ether price bounced sharply above a bearish trend line on the hourly chart with resistance at $42.50. The candle breaking the trend line resistance looks solid, suggesting a strong rejection from the swing low.
In my view, there is likely a double bottom pattern forming on the hourly chart around $41.20. Two swing lows are formed above $41.00, resulting in an upside move.
The price has already broken a major hurdle, and now needs to clear the $45.00 resistance to gain pace for further gains. The mentioned resistance also represents the 61.8% Fibonacci retracement level of the last decline from the $47.26 high to $41.20 low.
If the price succeeds in breaking $45.00, there can be a retest of $47.50, which is another important resistance. A close above $49 is must for sustained monthly gains in ETH/USD.
Looking at the 4-hour chart, the pair is attempting a close above a bearish trend line at $43.50-44.00. On the upside, another trend line is waiting near $47.00. The price is showing positive signs with a double bottom pattern near $41.20, but faces many hurdles on the way up.