ETH/USD Forecast: Trades Positive Above $49.00
|The ETH/USD pair, after a brief phase of consolidation around $48, broke to the upside.|
|The pair traded above the range resistance of $49, signaling a positive shift in the momentum.|
|The ETH/BTC pair remained neutral above 0.040BTC with no gains due to rising Bitcoin price.|
Technically, the 30-min chart indicators turned north, signaling an extension in the bullish territory.
Ether Price Forming Support?
On Tuesday morning, Ether got buyer’s attention and started moving higher against the US Dollar, as the ETH/USD pair traded above the $49.00 resistance to trade towards $50.00.
On the other hand, the ETH/BTC pair was not able to post intraday gains since Bitcoin price was seen heading higher, offsetting an increase in Ether price vs Bitcoin.
When we look at the 30-min chart of ETH/USD, there was a consolidation phase above the $48.00 support. The pair consolidated for a brief period before breaking to the upside.
The price successfully broke the $49.00 resistance and traded towards $49.60. The current momentum is bullish, suggesting more upsides in the near term. Most importantly, there was no close below the 23.6% Fibonacci retracement level of the last wave from the $42.13 low to $50.92 high.
The price is likely to move further higher to challenge the $50.00 handle and might even break it for a test of $50.80. On the downside, the broken resistance at $49.00 may act as a support if the price moves down or corrects lower.
The $49.00 support now represents the 38.2% Fibonacci retracement level of the last wave from the $47.57 low to $49.49 high. However, it seems like there won’t be a dip towards $49.00 until ETH/USD attempts a break above $50.00.
The 2-hour chart suggests a clear increase in bullish momentum, considering at the last 2 candles, and it looks like the pair is forming a decent support above $48.00. We must not forget that the $50.80-50.90 resistance remains a major hurdle on the upside for Ether price.
In my view, there can be a continuation of the current trend, but ETH/USD may once again fail to clear $50.80.