ETH/USD Forecast: Buyers Struggling To Hold Gains
|The ETH/USD pair failed to hold the $290-280 support area and traded towards $260.|
|It seems like buyers are struggling for a daily close above $300-310, escalating risk of a downside reaction.|
|The ETH/BTC pair also moved down by roughly 5% and traded below the 0.115BTC support zone.|
Technically, the hourly chart indicators moved below their mid-lines to enter into the bearish territory.
Ether Price Forming Extended Range
The ETH/USD pair is making a bigger degree three wave pullback, and recently broke the $280 support to initiate the second wave.
Yesterday, we saw a key triangle support on the 2 hours chart near $280. The pair failed to hold the mentioned triangle support and started yet another downside move.
When we look at the hourly chart of ETH/USD, there was a perfect close below the $290-280 support. This means more weakness can follow on the pair and ideally search for a support around $260.
The 50 percent Fibonacci retracement level of the last leg from the $209 low to $324 high is also near $260. At the moment, the pair is consolidating below $280 and a further bout of profit taking could take it towards $260.
Looking at the 4 hours chart, there is a descending channel support forming that could slowly take the pair lower. On the upside, a break above the channel resistance at $300 might call for a test of a bearish trend line at $305.
There is a possibility of a three wave formation from the $324 swing high. The second wave may complete anywhere near $260, and the third wave could be the final leg in which the pair should trade above $300.
If ETH/USD fails to hold $260, it may ignite a larger pullback towards $210. On the upside, a close back above $280 is needed for the pair to gain pace above $300 in the near term.