ETH/USD Forecast: Upside Capped Near $230.00-233.00
|The ETH/USD pair struggled to break the $230.00-233.00 resistance, and corrected lower.|
|The pair broke a major bullish trend line at $225.00 on 2-hour chart.|
|ETH/BTC extended yesterday’s declines and moved below the 0.095BTC support.|
Technically, the 2-hour chart indicators remain in the bullish territory, but presenting short-term bearish signs.
Can Ether Price Hold the Current Trend?
Range play remains intact in ETH/USD, as the pair keeps finding buyers on every attempt to test $200.00, while the upside remains capped by the $230.00-233.00 levels.
On the other hand, there was an increase in bearish pressure for ETH/BTC, resulting in further declines below the 0.095BTC support.
There is a trend line break visible on the 2-hour chart of ETH/USD at $225.00. However, there was no momentum whatsoever post the break, causing the trend to be invalidated.
The $200 support remained intact, and the pair is seen moving back and forth in a $20.00 narrow range over the last hours.
Moving on to the 6-hour chart of ETH/USD, the pair is nicely following an ascending channel with support at $210.00. This is another reason why the trend line break at $225.00 on the 2-hour chart can be ignored.
Even if the pair breaks $210.00, there are other important supports like $205.00 and $180.00 on the downside to hold the current trend.
In the US, payrolls figure for May will be published, and the market is anticipating a strong employment growth. It would be interesting to see how ETH/USD reacts after the data is released, considering the current risk-on sentiment. If buyers get a reason to sell the greenback, we may witness a break above $230.00 later today.
Overall, the undertone for Ether is still positive, but it needs to gain momentum soon, else risk of further downsides may escalate.