ETH/USD Forecast: Ether Takes a Sharp U-Turn
|The $80.00 support zone in ETH/USD played it's part well, as the pair bounced back sharply.|
|There is a possibility of an inverse head and shoulders on the hourly chart as long as the pair remains above $89.00.|
|The ETH/BTC also recovered quickly and now trading above the 0.050BTC level.|
Technically, the hourly chart indicators revered, and pointing a changed market sentiment overnight.
Ether Price to Break Higher?
On Tuesday evening, Ether recovered most of its losses against the US Dollar, as the currency exchange rate took a U-turn and traded above $88.00. Similarly, the ETH/BTC pair gained pace and traded above the 0.050BTC mark.
It looks like the ETH/USD pair chewed strong bids near a major support area at $80.00-82.00 and bounced back. The upside move easily propelled the pair above the 61.8% Fibonacci retracement level of the last decline from the $93.00 high to $78.74 low.
It almost tested the last swing high at $93.00, and is now trading comfortably above $89.00. The stated level might once again provide support and stop any declines in the short term.
Looking at the hourly chart of ETH/USD, there is likely an inverse head and shoulders forming, while not perfect, it holds a base around $89.00 with a clear head (as shown in the chart).
If the highlighted pattern is true, there is a chance that ETH/USD would break $95.00 soon and retest the all-important $100.00 resistance.
Ether’s price must stay above $89.00-88.00 for the pattern to be validated. Moving on to the 4-hour chart of ETH/USD, the pair is currently trading near a major resistance at $92.00.
There are two bearish trend lines acting as a hurdle and preventing gains. If the stated inverse head and shoulders is valid, the pair may soon break these trend lines for an upside move.
On the downside, the most important weekly support is still sitting at $82.00-80.00. As long as the pair holds and remains above this level, there can be further gains in the near term.