ETH/USD Forecast: Ether Down, But Not Out
|The $180.00 level proved significant for the ETH/USD pair, as it prevented a break towards $200.00.|
|There are two important bullish trend lines positioned above $130.00 on the 4-hour chart.|
|ETH/BTC trimmed more than 10% of its recent gains, and currently trading below the 0.078BTC resistance.|
Technically, the hourly chart indicators are above their mid-levels, but lacks bullish momentum.
Ether Price to Correct Further?
Yesterday, we analyzed an important reaction level at $180.00 where the ETH/USD pair was seen struggling. As a result, an indecision pattern formed on the hourly chart just around the same mark.
The pair failed to clear $180.00. It attempted twice to surpass the stated level, but was unsuccessful, and later moved down sharply below $150.00.
The hourly chart highlights a major drop from $180.00 to $140.00. The downside gained pace with three outside, down bearish patterns. A new intraday low was formed just below $140.00 before the pair found support and started a recovery.
ETH/USD moved above the 38.2% Fibonacci retracement level of the last drop from the $180.23 high to $136.18 low. At the moment, a bearish trend line at $165.00 is preventing further upsides.
The trend line resistance is just around the 61.8% Fibonacci retracement level of the last drop from the $180.23 high to $136.18 low. It clearly holds a lot of importance, and Ether buyers may struggle to break it in one attempt.
When we look at the 4-hour chart of ETH/USD, there are two key bullish trend lines positioned above $130.00. The recent drop from $180.00 found support near these trend lines.
On the upside, the $180.00 resistance may continue to play a major role for the next move in Ether price. It can be considered as a barrier for ETH/USD before it attempts a test of $200.00. Once buyers pierce $180.00, $200.00 is very likely.
On the downside, we need to keep a close watch on the H4 trend lines near $130.00. As long as $125.00 is intact, we may witness a short-term consolidation, followed by an attempt to break $180.00.