ETH/USD Forecast: Resistance Turned Support
|The ETH/USD pair is currently correcting lower from the $50.92 high, and may trade towards a major support area.|
|One of the previous resistance zones near $45 may now serve as a support area.|
|The ETH/BTC pair also weakened overnight and moved below the 0.040BTC support.|
Technically, the 2-hour chart indicators are pointing short-term weakness and bending lower.
Ether Price Heading Towards Support
The ETH/USD pair after trading as high as $50.92 failed to hold the bullish momentum, and started a correction wave yesterday. The ETH/BTC pair was seen holding the 0.040BTC-0.041BTC support, but later, it also faced selling pressure and moved down.
It looks like Ether price is setting up for an extended correction against the US Dollar and Bitcoin. Looking at the 2-hour chart of ETH/USD, the pair has already moved below the 23.6% Fibonacci retracement level of the last wave from $42.13 low to $50.92 high.
The last few candles are pretty bearish, signaling selling pressure. A major support is waiting near $45.00. The stated level was a crucial resistance earlier, and now may act as a support.
The $45 support also coincides with the 61.8% Fibonacci retracement level of the last wave from the $42.13 low to $50.92 high. There are chances of it holding the current downside move in the short term.
On the other hand, if the $45-44 support area fails to hold the current correction wave, there is a possibility of Ether price retesting the last swing low at $42.
When we look at the 30-min chart of ETH/USD, the pair after trading as low as $46.22, started an upside move. It recently broke a bearish trend line with resistance at $47.05.
It is a good signal considering short-term view as there is tiny connecting bullish trend line forming with support at $47.05. In my opinion, there is a chance of a dip towards $45.00 to fill buy orders before the next wave.