ETH/USD Forecast: Ether Rallies From $48
|After forming a base around $48.00, the ETH/USD pair bounced and traded towards the $50.00 handle.|
|The pair broke a bearish trend line on the 2-hour chart at $48.20 before gaining momentum.|
|Ether also gained roughly 2% against Bitcoin, and was seen attempting a close above 0.040BTC.|
Technically, the 2-hour moved back in the bullish territory with positive momentum.
Ether Price Next Upside Hurdle?
It was a good day for Ether buyers, as the price gained against both the US Dollar and Bitcoin. The market traded with a positive tone, possibly due to risk on sentiment fueled by the French elections.
Looking at the 30-min chart of ETH/USD, there was a clear consolidation above a major support area at $48.00. The pair formed a base, and then moved higher.
During the upside move, the pair cleared two bearish trend lines at $48.20 and $48.35. It sparked a rally above the 50% Fibonacci retracement level of the last decline from $48.95 to $48.13.
The pair gained momentum, formed four back to back bullish candles and managed to break the $49.00 resistance. There was even a close above the 1.236 extension of the last decline from $48.95 to $48.13.
A new intraday high was formed at $50.02 where Ether price faced resistance. At the moment, there is a flag pattern formed on the chart with support at $49.20. The price needs to hold the $49.20 flag support in order to prevent a downside break.
If the price fails to hold the $49.20 support, there can be a test of $49.00. The stated level was a resistance earlier, and now coincides the 50% Fibonacci retracement level of the last wave from the $48.13 low to $50.02 high.
On the upside, a break above $50.00 is needed for further gains. If ETH/USD settles above $50.00, it would call for a test of the all important range resistance at $51.00, which is the next upside hurdle.
Looking at the 2-hour chart, the recent bounce from the $48.00 range support looks positive. However, there is a chance of a minor downside push from $50.00 before Ether price moves back higher.