ETH/USD Weekly Forecast: Risk of Upside Break Grows
|The ETH/USD pair had a good week with an important correction followed by a slow and steady rise.|
|The pair recently broke a key bearish trend line on the 12-hour chart at $350.00, opening the doors for further gains.|
|The ETH/BTC pair remains range bound and seems like it is preparing for a ride above 0.150BTC.|
Technically, the 12-hour chart indicators are back in the bullish territory after a minor dip amid correction.
What’s Next for Ether Price?
It was an eventful week for Ether, as it corrected lower against the US Dollar by more than $100. The ETH/USD pair dipped from $414.00 to $261.00 to complete a correction.
In a major rally, corrections play a significant role. They suggests that the price is following a decent bullish structure and likely to continue higher.
The recent dip in ETH/USD was much needed and resulted in increased buying interest in Ether during the past few days. After declining towards $260.00-250.00, the pair recovered, and moved above the 50% Fibonacci retracement level of the last decline from the $414.00 high to $256.00.
It means there are high chances of ETH/USD retesting the last swing high of $414.00, should buying interest remain intact, the pair may look to challenge the previous mark, setting a new all-time high.
There’s a major ascending channel pattern with support at $350.00 forming on the 2-hour chart, which can be considered as the current trend’s support.
As long as the price stays in the channel, it may trade towards a crucial resistance of $395.00-400.00. On the downside, there is a weekly support base at $320.00,
Looking at the 12-hour chart of ETH/USD, it is quite clear that Ether is back in bullish territory. With a break above a key bearish trend line at $350, the pair is now approaching the uptrend resistance of $400.00.
On the downside, there are two significant bullish trend lines with support around $300.00, which can be termed as a long-term support.
To sum up, Ether is gaining bullish momentum above $350.00 and is likely to extend gains in the near term as long as it stays above the $320.00 support area.