ETH/USD Forecast: Ether Gathers Traction on USD Weakness
|ETH/USD continued to trade in a range above $310.00 and seems to be rising on US Dollar weakness.|
|There is a monster contracting triangle pattern forming with support at $290.00 on the Daily chart.|
|ETH/BTC is holding a key level above 0.120BTC, representing a decent support.|
Technically, the 4-hour chart indicators are flat and attempting to move above their mid lines.
Ether Price Daily Chart View
The last few days were mostly negative for Ether against the US Dollar and Bitcoin. The ETH/USD pair suffered a decline of more than $80.00 and traded below a key support of $300.00.
That being said, the pair recovered well to close above $300. Let’s analyze the daily chart to understand how the pair is forming a breakout pattern.
There is a contracting triangle pattern forming with resistance at $330.00 and support near $290.00. It is a crucial pattern and might play an important role for the next move in the near term.
On the downside, there are three significant supports - $290.00, $260.00 and $205.00. These are medium term supports, which are critical for the current bullish trend.
On the upside, a break and close above the triangle resistance at $330.00 is needed to initiate a fresh bullish wave. The next most important resistance sits at $380.00-400.00.
Moving on to the 4-hour chart of ETH/USD, there is a bearish trend line with resistance just below $350.00. On the downside, the $290.00 support is a crucial area for buyers. As long as Ether’s price is above $290.00, there are chances of an upside break above $330.00 and $350.00.
The price also needs to break the 50 percent Fibonacci retracement level of the last drop from the $414.00 high to $261.00 low at $337.00.
There are many hurdles for Ether on the way up starting with $330.00 followed by $350.00. We might continue to see ranging moves until buyers gather pace for further upsides in the near term.