ETH/USD Weekly Forecast: Ether at Major Crossroads
|Ether's failure to settle above $50 against the US Dollar ignited a downside move.|
|Looking at the daily chart of ETH/USD, there is a nice support above $40, and major resistance around $50.|
|ETH/BTC also struggled to retain the bullish bias this past week and moved below 0.040BTC.|
Technically, the 4-hour chart indicators remain in the bearish territory, but slowly steadying.
What’s Holding Ether Price Decline?
This past week was mostly bearish for Ether, as the price failed to sustain the bullish momentum against the US Dollar and Bitcoin. The worst performer was the ETH/BTC pair, which declined from well above 0.045BTC to 0.036BTC.
Similarly, the ETH/USD pair failed to hold gains above the $48.00 level, and moved down. There was a slide towards $41.00 where buyers managed to protect further declines.
When we look at the daily chart, it is quite clear that there is a bearish cloud above $50.00. There were numerous attempts to break the stated level, but the price failed to hold gains, and later moved down.
There was a sharp dip from the $51.00 high towards the $40.00 handle with a new low at $41.12. Looking at the chart, it looks like the $40.00 handle is a pivot area for ETH/USD. The pair may continue to find bids above $40.00, as it happened during this past week.
There were declines towards $40, but the price found support well above $41.00, and held losses. It is important to note that the $40.00- 41.00 support area also coincides with the 38.2% Fibonacci retracement level of the last leg from the $18.00 low to $54.00 high.
So, the $40.00- 41.00 support area holds a lot of importance for the large bullish trend. A daily close below it may call for a medium-term trend change, and the price could slide back towards the 50% Fibonacci retracement level of the last leg from the $18.00 low to $54.00 high at $36.00.
On the other hand, if the $40.00 support area holds, the $48.00- 50.00 resistance zone might be targeted once again which is a crucial resistance. Looking at the 4-hour chart, the pair is finding support above $41.00, and currently consolidating.
There are two bearish trend lines out of which one is broken recently at $43.00. However, the price needs to gain momentum in order to capitalize on the recent break else it can retest the $41.00 support zone.