ETH/USD Forecast: Recovery Won’t Be Easy
|ETH/USD extended its decline and even traded below the $290.00 support area.|
|The previous supports such as $325.00 and $340.00 may now prevent recoveries in the near term.|
|ETH/BTC extended its decline and traded below the 0.120 BTC support.|
Technically, the 2-hour chart indicators have moved in the bearish territory and are signaling negative bias.
Ether Price under Pressure
ETH/USD trades with a slightly negative bias and recently extended its decline below the $310.00-290.00 support area. Similarly, ETH/BTC was pressured and the pair moved below the 0.120 BTC support to trade close to 0.110 BTC.
Yesterday, we discussed two key supports: $310.00 and $290.00. The recent decline in ETH/USD got extended and the pair moved below the stated support levels.
The only good thing was a no-close below the $290.00 support, and the pair bounced back above $300.00. Ether’s price is has been making minor-recovery attempts over the past few hours, but it faces many challenges on the way up.
The two important broken supports at $325.00 and $340.00 are hurdles for buyers and most likely to prevent upsides in the near term. The price already tested $325.00 during the recent recovery and failed to overcome sellers.
Rallies will need to regain the 50 percent Fibonacci retracement level of the last decline from the $378.00 high to $278.00 low, to refocus attention on the topside and $360.00.
Failure to clearly break above the $325.00 pivot keeps risk at the downside, as 2-hour studies are in bearish setup. Ether continues to hover above the $310.00-300.00 area and its lack of follow-through has dented the medium-term bullish setup.
A close below $290.00 (the weekly pivot) should trigger further losses to the $260.00 support. Looking at the 6-hour chart of ETH/USD, the pair spiked below $290.00 during the recent dip and recovered.
There is a possibility that the pair might move towards a bearish trendline at $350.00. Having said that, upsides remain limited, considering the recent shift in the market sentiment.
To the downside, the $310.00 region comes as the immediate support. Further declines would signal a bearish acceleration, with $290.00 being the next probable bearish target.