ETH/USD Weekly Forecast: Ether Primed For Lift-Off
|The ETH/USD pair, after a remarkable run above the $100.00 level, started a short-term correction.|
|There are many important support levels on the downside, highlighted by $92.00, $90.00 and $88.00.|
|The ETH/BTC pair also initiated a corrective wave after trading close to the 0.0625BTC level.|
Technically, the 12-hour chart indicators remain super bullish despite overbought levels.
Ether Price Slightly Down, but Not Out
It was a great past week for Ether buyers, as the price overcame all hurdles and reached new highs against both the US Dollar and Bitcoin.
The ETH/USD pair spiked up to $103.67, its highest thus far, but was unable to successfully close above at $100.00, a critical resistance needed to be overcome to confirm an extension of its latest bullish rally. In short, a daily close above $100.00 is needed for another sustained rally in the near term.
After trading at $103.67, Ether price started a correction, and dipped towards $90.00. There were a couple of attempts by sellers to take the price further lower, but they failed.
There is a key bullish trend line formed on the 2-hour chart, which prevented declines below $91-92. As a result, the pair spiked higher and broke a major bearish trend line on the same chart at $92.5.
ETH/USD also managed to clear the 38.2% Fibonacci retracement level of the last decline from the $103.67 high to $91.00 swing low, currently attempting a close above the 50% Fibonacci retracement level of the same wave.
If Ether buyers succeed, there is a high possibility of ETH/USD retesting the $100.00 level. On the downside, the next bullsih trend line below $90.00 looms at $88.00, and may also act as a support if the pair moves down in the near future.
When we look at the 12-hour chart, there are clear support levels at $90.00 and $82.00. The most important one is just above $82.00 in the form of a bullish trend line.
The current candle looks bullish, suggesting an upside move towards $98.00-100.00. Overall, some minor dips in ETH/USD may materialize but the pair remains in a larger bullish trend, with chances of further gains above $105.00.