ETH/USD Forecast: $90.00 Hold, Key In Short-term
|The ETH/USD pair struggled to break the $98.00 resistance and fell towards $90.00, which is an important support.|
|During the downside move, the pair broke a bullish trend line at $96.00.|
|An increase in buying interest for Bitcoins prompted a decline in ETH/BTC towards 0.055BTC.|
Technically, the hourly chart indicators are now slightly bearish and under pressure.
Can Ether Price Gain Momentum?
The up-move in Ether was short-lived against both the US Dollar and Bitcoin, as there was a rapid pullback from the recent highs.
The ETH/USD pair failed on two occasions to break the $98.00 resistance, resulting in a decline. It suggests that recent strong bullish pressure has eased, but it does not mean that we can expect a significant pullback.
During the downside move, the pair broke a bullish trend line at $96.00, and the 50% Fibonacci retracement level of the last wave from the $91.00 low to the $98.00 high.
The pair traded below the $91.00 swing low and formed a new intraday low at $89.08. A strong buying interest around $90.00 prevented further declines and pushed the price higher.
The pair moved higher, but struggled to move past $95.00, and the 50% Fibonacci retracement level of the last decline from the $98.00 high to $89.08 low. It retested the $90.00 support, which once again held the downside move.
The recent failures to break $90.00 clearly suggests that the mentioned level holds a lot of importance, and can be considered as a pivot area.
The 4-hour chart also highlights its significance. A crucial bullish trend line and a horizontal support is found at $90.00, preventing declines in ETH/USD.
As long as the price is above $90.00, it remains supported for another leg higher. On the upside, a break above a bearish trend line at $95.00 is needed for Ether price to gain momentum in the near term for a retest of $100.00.