ETH/USD Forecast: Ether Continues To Challenge $400.00
|The ETH/USD pair is consolidating below the $400.00 handle and remain in the bullish zone.|
|There is a contracting triangle pattern forming with resistance at $395.00 and support near $375.00 on the hourly chart.|
|The ETH/BTC pair is looking to extend gains towards 0.150BTC in the near term.|
Technically, the hourly chart indicators are moving nicely in the bullish territory, signaling further gains.
Ether Price About to Break above $400.00?
The ETH/USD pair recovered well after a sharp downside move towards $320.00-310.00, and now it is well positioned for further upsides.
The pair is currently struggling to clear the $400.00 handle, trading within a $20.00 margin. On the upside, the range resistance is near $390.00-395.00. On the downside, there are two bullish trend lines with support just above $375.00.
It seems like there is a contracting triangle pattern forming with an upside potential above $400.00. There is a 5-wave pattern from the $312.00 low in the making, with the price currently partaking in the 5th wave.
There are high chances of ETH/USD completing the 5th wave above the contracting triangle resistance at $395.00. Should there be a break above $395.00, the price could easily extend gains above the $400.00 level towards the $414.00 high.
The pair is already above the 76.4% Fibonacci retracement level of the drop from $414.66 high to $312.93 low, which is a positive sign pointing a retest of $414.00.
On the downside, the highlighted trend lines with support near $375.00 might play a major role for the current bullish bias. A successful close below $375.00 might call for a short-term bearish bias towards $350.00.
Looking at the 4-hour chart of ETH/USD, there is a crucial support formed at $350.00. The next major support is underneath $300.00 in the form of a bullish trend line and a horizontal support.
Overall, both the medium and long term technical pattern are bullish, and short-term setbacks towards $375.00, $350.00 and even $320.00, remain well supported.