ETH/USD Weekly Forecast: Overall Trend Bullish
|The ETH/USD pair after finding strong bids above $41.00 moved higher and traded above $50.00.|
|The pair faced heavy offers near one of the previous resistances at $51.|
|The ETH/BTC pair maintained its bullish bias, and traded above the 0.040BTC resistance.|
Technically, the 4-hour chart indicators are mostly bullish with a minor divergence.
Ether Price Facing Uphill Task
It was a good week for Ether, as the price traded with a positive bias against both majors (US dollar and Bitcoin). The overall trend remains bullish, but with chances of short-term pullbacks.
The ETH/BTC pair made most moves, as it traded towards 0.035BTC from 0.045BTC and then managed to trade back above 0.040BTC. It remains in the positive zone as long as above 0.038BTC.
Let’s try to understand the current bias looking at the daily chart of ETH/USD. In the last weekly analysis, we saw how there is a wide range pattern formed with support near $40 and resistance just above $50.
The pair, after a downside move, tested the range support at $40-41 and started trading in a short range. Once the range pattern was complete, it jumped to trade back towards the upper range resistance near $51-52.
At the moment, the pair is struggling to clear the range resistance area, but remains supported. On the downside, there is a connecting bullish trend line formed with support at $45, which may act as a strong barrier for sellers if the pair moves down.
When we drop down to the 4-hour chart of ETH/USD, there is a clear resistance near $51. The chart highlights three failures around the same resistance area, and downside moves. Earlier, the price consolidated in a triangle pattern above $41 before starting an upside move.
There was a recent rejection just above $50, and the price is now moving lower. An initial support is around $47. It also coincides with the 38.2% Fibonacci retracement level of the last wave from the $41.12 low to $50.92 high.
However, the most important support is at $45 (previous swing low). In my view, there can be a minor downside move, but Ether mostly remains in bullish trend.