ETH/USD Forecast: $340.00 and $320.00 as Crucial Supports
|The ETH/USD pair maintained a bid tone during the weekend and stayed above the $340.00 support.|
|There are two important supports formed on the 4-hour chart at $340.00 and $320.00, which holds the key in the short term.|
|The ETH/BTC pair remains confined to a tiny range with an overall bullish sentiment.|
Technically, the hourly chart indicators are moving to and fro near their mid lines in the bullish territory.
Ether Price Holding above $340.00
The ETH/USD pair made slow gains on Sunday, exceeding a short-term resistance at $360.00 and trading near the $380.00 level. It traded as high as $378.38 from where it started a downside move.
It dipped back towards a major support at $340.00 which prevented further losses. Ether’s price is once again moving higher and recently broke a short-term resistance at $355.00, but failed to overcome sellers at $360.00.
The price may retest the $340.00 support but likely to stay above it. It seems like there is a range pattern forming with support at $340.00 and resistance at $360.00. Above $360.00, the next resistance is at $380.00 followed by the all-important $400.00.
Once ETH/USD breaks $360.00, it sets the path for a $20.00 ride. On the other hand, the next support below $340.00 sits at $320.00 followed by $280.00.
All three supports ($340.00, $320.00 and $280.00) can be clearly seen on the 4-hour chart of ETH/USD. The stated supports are crucial for the current bullish trend and must hold in the near term.
A short-term descending bearish trend line at $365.00-360.00 is preventing a test of $400.00. The recent failure near $378.00, was also around the same trend line and the 76.4% Fib retracement level of the last decline from the $414.00 high to $261.00 low.
Ether buyers need to step up the bullish momentum in order to overcome the current range pattern and trend line resistance. The short-term trend is neutral to bullish with high chances of more gains towards $395.00-400.00 in the near term.