ETH/USD Forecast: Range Trading Persists
|The ETH/USD pair did not move much despite soft NFP data in the US for May 2017.|
|The pair seems to be forming a decent range with resistance at $225.00, and support at $220.00 and $215.00.|
|ETH/BTC declined further by roughly 4%, and currently trading near 0.090BTC.|
Technically, the 30-min chart indicators are signaling an extended range pattern with mild bullish setup.
Ether Price Holding Key Supports
Friday’s non-farm payroll report for May 2017 in the US eased investors’ expectations for a Federal Reserve rate hike in the upcoming policy decision this month. It was a positive signal for Ether buyers, and helped ETH/USD to hold key supports like $215.00.
The 30-min chart of ETH/USD suggests an extended range pattern. On the upside, the range resistance is at $255.00, protecting further gains.
There are two important supports - $220.00 and $215.00. The lower end of the range support at $215.00 is a crucial hurdle for sellers if they look to take down buyers in the near term.
The $215.00 support is close to the 50% Fibonacci retracement level of the last leg from $206.00 to $225.00, and therefore serving as a major support.
Looking into the 2-hour chart of ETH/USD, there is a crucial bullish trend line forming with support at $220.00. This week’s barrier rests at $233.00-234.00, and it seems like a contracting triangle pattern in making with breakout resistance at $234.00.
If Ether sellers gain pace considering the recent loss in bullish momentum, there can be a downside break below the trend line for a move towards $200.00.
The current price action suggests ranging moves in ETH/USD, but declines in ETH/BTC is impacting the market sentiment for Ether. Possibly serving as the main reason for ETH/USD’s struggles to break past $234.00.
In view of this, there can be minor declines and range moves in Ether price, but the overall medium term trend will remain bullish as long as ETH/USD stays above $200.00.