ETH/USD Weekly Forecast: Ether at Risk of Further Declines
|ETH/USD struggled a lot this past week and closed below the $325.00 support.|
|The ETH/BTC pair also faced selling pressure and moved towards the 0.120BTC support.|
Technically, the 12-hour chart indicators are turning bearish and signaling losses in the near term.
Ether Price to Test Crucial Supports
This past week was mostly bearish for Ether against the US Dollar and Bitcoin. It started with a correction phase which is slowly turning into a short-term negative sentiment.
Looking at the 2-hour chart of ETH/USD, the first leg down was from $362.00 to $278.00. The pair got bid around $278.00 and started a recovery. It moved above the 38.2 percent Fibonacci retracement level of the last decline from $362.00 high to $278.00 low.
The upside move failed near a bearish trendline at $330.00 and the 50 percent Fibonacci retracement level of the last decline from $362.00 high to $278.00 low. There were 3-4 attempts to break the $330.00 resistance, but buyers failed to gain momentum and as a result, there was a yet another downside move.
The pair broke a short-term bullish trendline at $325.00, and is currently trading near $330.00. On the downside, the pair is about to retest the $278.00 swing low.
Moving on to the 12-hour chart of ETH/USD, there is a crucial bullish trendline with support at $280.00. Below the trendline support at $280.00, there are two key pivot levels at $260.00 and $200.00.
If Ether continues to decline from the current levels, it may find support near $280.00 or $260.00. Any further declines should be limited considering the long-term market sentiment is still bullish.
On the upside, there is a monster bearish trendline with resistance at $330.00-335.00. A break and close above $335.00 would negate the current short-term bearish bias and put the price back in the bullish zone.