ETH/USD Weekly Forecast: Bounce or Bottom?
|Yesterday’s heavy selling of ETH/USD took the pair towards an important support area at $110.00-115.00.|
|The pair traded as low as $115.81 before forming an outside daily reversal pattern.|
|ETH/BTC soared by more than 12%, and currently trading above the 0.075BTC resistance.|
Technically, the 6-hour chart indicators after testing their mid-lines started a pullback.
Ether Price Correction Underway
On Saturday morning, Ether’s price declined heavily against the US Dollar and Bitcoin. The downside move was sharp, as ETH/USD lost almost all its weekly gains and traded from $211.00 to $115.00.
Most importantly, there was no daily close below $110.00-100.00 (as discussed in yesterday’s analysis), resulting in an outside daily reversal pattern forming.
The 6-hour chart of ETH/USD suggests that the pair held a crucial pivot zone near $120.00. There is a long tail candle forming, which generally suggests a rejection.
Furthermore, there was no candle close below the 61.8% Fibonacci retracement level of the last wave from the $82.00 low to $211.00 high. All these signs are enough to assume that the current decline has formed a bottom at $115.00, causing the price resumed its uptrend.
ETH/USD has already cleared the 50% Fibonacci retracement level of the last drop from the $211.12 high to $115.81 low. Looking at the 2-hour chart, there is a perfect bullish outside candle pattern forming at $125.00 which is another positive sign.
During the recent bounce, the pair pierced a major bearish trend line at $152.00, opening the doors for further gains. The next major hurdle for Ether buyers is near $175.00-180.00.
The mentioned levels provided support earlier, which now may prevent gains above $180.00. If buyers succeed in breaking $180.00, a retest of $200.00 is very likely in the near term.
Another dip back towards $150.00 is still possible, filling buy orders down the line, subsequently sparking a fresh rally towards or above $180.00.
To conclude, the recent dip took out short-term traders, especially buyers, yet the overall trend still remains bullish for ETH/USD and ETH/BTC.