ETH/USD Forecast: $245 Support Holds Key
|The ETH/USD pair failed to completely test $270.00 and started a short-term downside correction.|
|It seems like the pair finished a 3-wave bullish pattern at $267.36 and may trade a few points lower.|
|The ETH/BTC pair traded higher by around 2% as Bitcoin price was under pressure recently.|
Technically, the hourly chart indicators recovered well after hitting the oversold levels.
Ether Price Upside Hurdle
The ETH/USD pair extended yesterday’s correction pattern and was not able to test the $270.00 technical level. There was a failure near $264.00 and $263.00, igniting a downside move.
The pair fell sharply from the $264.00 swing high and even breached a major support at $250.00 to trade towards another significant hurdle for sellers at $245.00.
The stated support prevented losses as it did on many occasions earlier, and the recent low was just above $245.00. The price has recovered well, and moved above the 23.6% Fibonacci retracement level of the last drop from the $264.00 high to $245.00 low.
The current wave is encouraging with a close above $250.00. However, there is an important bearish trend line at $261.00, which is acting as a physiological barrier for buyers.
The price is currently struggling to break the 76.4% Fibonacci retracement level of the last drop from the $264.00 high to $245.00 low. The last three hourly candles are bearish and suggest yet another downside ride towards $250.00.
Looking at the 4-hour chart of ETH/USD, there is a short-term breakout pattern forming with support at $248.00. There is also a key bullish trend line on the downside at $249.00.
Overall, it seems like the support zone near $250.00 and $245.00 holds a lot of importance in the near term. As long as the price is above $245.00, it can challenge the $264.00 resistance once again.
Above $264.00, the recent high at $267.00 may be tested, followed by a major technical level at $270.00. Should there be a break below $245.00, the price could extend losses towards $220.00.