ETH/USD Forecast: Ether Consolidating Losses
|ETH/USD is slowly recovering and is currently consolidating above the $310.00 support.|
|There is a key resistance area forming near $340.00 which can be considered as breakout level for an upside move.|
|ETH/BTC has started consolidating losses above a major support at 0.120 BTC.|
Technically, the 2-hour chart indicators recovered well from the oversold readings and are now stable.
Ether Price Upside Hurdles
During the last two days, we saw an extended correction pattern in ETH/USD. The pair traded as low as $278.00 and later started a recovery.
The current upside move has started showing positive signs with a close above the 38.2 percent Fibonacci retracement level of the last decline from the $378.00 high to $278.00 low.
Looking at the 2-hour chart of ETH/USD, there are a few bullish candles formed above $300.00-310.00 which is a good sign in the short-term. However, it’s hard to conclude the current decline since there are a few major hurdles on the upside near $330.00-340.00.
The most important hurdle sits at $340.00. It was a support earlier and now it might act as a barrier for further gains above $350.00. There is also a bearish trendline waiting just above $340.00 to prevent buyers from gaining traction.
Furthermore, at close above the 50 percent Fibonacci retracement level of the last decline from the $378.00 high to $278.00 low is needed to conclude the recent correction from the $378.00 swing high.
Dropping down to the 30-minute chart of ETH/USD, there is a range pattern forming with support near $310.00 and resistance at $33.00. Ether’s price is testing the range resistance and attempting an upside break.
A successful close above $330.00 might take the pair towards $340.00. On the downside, the $310.00 level is a major buy zone and must hold to prevent any further declines.
To sum up, there are a few positive signs emerging, but a break above $340.00 is needed for Ether to complete the current correction.