ETH/USD Weekly Forecast: Ether at Major Crossroads
|The ETH/USD pair after a correction towards $78.00 found support and currently moving higher.|
|A crucial bullish trend line on the daily chart prevented downsides at $78.00 and may continue to act as a major support.|
|The ETH/BTC also recovered well after a dip below 0.045BTC.|
Technically, the 2-hour chart are consolidating above their mid-lines in the bullish territory.
Ether Price to Trade Higher?
The past seven days were mostly bearish for Ether, as the price corrected lower against both the US Dollar and Bitcoin. The ETH/BTC pair fell well below 0045BTC before recovering above 0.050BTC.
Similarly, the ETH/USD pair fell sharply from the $98.00 swing high to well below $80.00. A low was formed at $78.74 from where the pair started a recovery.
There is a crucial bullish trend line on the daily chart at $78.00, which acted as a major support and preventing further losses. At the moment, the price is trading above the trend line support and may trade higher in the near term.
It seems like a short-term corrective structure was completed at $78.00 since it is near the 23.6% Fibonacci retracement level of the last wave from the $42.00 low to $103.00 high, at the very least the first wave of A-B-C pattern was over at $78.00.
The next move in Ether price mostly depends on how well buyers gather momentum above $90.00. If they succeed in keeping ETH/USD above the highlighted trend line support for a long time, there are chances of a sharp rise towards $100.00.
The 2-hour chart suggests that the pair is consolidating above the $87.00 support area with resistance at $93.00-93.50. At the moment, the pair is approaching the range resistance and is in the fith wave inside the channel structure.
Should ETH/USD breaks past $93.00 and an H2 close above the stated level takes place, the pair may gain momentum and continue pushing higher.
On the downside, we need to keep an eye on $87.00. A break below it might push the price towards the daily trend line support, which holds the key for the current bullish trend.