ETH/USD Forecast: Ether Stays Below Resistance
|There was little change intraday, with the ETH/USD pair trading in a range above $50.00.|
|The hourly chart suggests that the pair broke a short-term support at $50.30, which may ignite a downside reaction.|
|The 4-hour ETH/USD chart points to a fading bullish momentum, setting the stage for a possible decline vs the US Dollar.|
Technically, the 2-hour moved back in the bullish territory with positive momentum.
Ether Price Short-term Bearish?
Ether remained almost unchanged on Tuesday morning against the US Dollar and Bitcoin. It looks like the short-term market sentiment is fading and could result in a minor downside move.
The hourly chart of ETH/USD suggests that the pair is losing momentum after breaking a major channel support area at $50.30. Earlier, the pair traded as high as $50.49, faced sellers and moved down.
At the moment, yesterday’s pivot at $50.00 is preventing downsides and holding the trend. On the upside, there is a tiny connecting bearish trend line with resistance at $50.30.
It remains to be seen whether the pair breaks the $50.30 resistance or clears the $50.00 support for an extended correction wave.
A break below $50.00 could lead to a move towards the 50% Fibonacci retracement level of the last wave up from $48.13 to $50.49. The next major support after $50.00 is $49.00-48.80.
Alternatively, a break and close above $50.30 might ignite a fresh rally, leading Ether price towards the all-important $51.00 resistance area.
We can clearly see the mentioned resistance on the 4-hour chart of ETH/USD. At the moment, it looks like the pair is losing momentum, considering the last two candles.
There is a high possibility that the pair may not test $51.00 in the current wave, and might move down back below the $50.00 support area.
We may see more ranging moves today between $49.00-50.50, as it is my view, that presently, there is no reason for any major move.