ETH/USD Forecast: Upside Risk Persists
|Ether’s price continued to trade above $41.10 against the US Dollar, but gains were limited.|
|The 4-hour chart of ETH/USD suggests that the pair is approaching a major break with strong support above $41.0.|
|There was almost no action in ETH/BTC, as the pair continued trading near 0.036BTC.|
Technically, the indicators on the 4-hour chart are slowly recovering and positioning to gain momentum.
Can Ether Price Break Past $45?
It’s been a slow start to the week for Ether, as the price mostly traded in a range against the US Dollar and Bitcoin. However, it looks like it is preparing for the next move, and may sooner or later break up or down.
The question is in which direction it may head? Let’s start with looking at the hourly chart of ETH/USD. There are a few points to note. First, there is a resistance cluster formed near $45.00. Second, the price is holding a crucial support well near $41.00.
Third, the recent failure to close above $45.00 ignited a downside, but the price remained well supported on the downside. At the moment, there is a descending channel pattern formed with resistance at $44.00.
The last few candles were bullish and suggests that the price may attempt a break above $44.00. In that case, Ether sellers near $45.00-45.10 might be tested again.
When we look at the 4-hour chart, the importance of $45.00 resistance is pretty clear. There is a critical bearish trend line positioned near the stated level, which may act as hurdle for an upside move.
The price is currently attempting a break above another bearish trend line formed via a connecting $47.40 high. If successful, there are high chances of ETH/USD breaking $45.00 for further gains.
On the other hand, if the pair fails to break and settle above $45.00, there could be a retest of $41.00. Overall, it looks like the price is soon approaching a break with a slight chance of an upside move considering the current price action and technical indicators.