ETH/USD Weekly Forecast: Ether Holding Downtrend Support
|The ETH/USD pair was unable to retain gains above $280 and currently trading lower.|
|There is an important contracting triangle (descending) pattern with support at $200-210 forming on the daily chart.|
|The ETH/BTC pair is just holding the 0.100BTC support and remains at a risk of more declines.|
Technically, the daily chart indicators are still in the bullish territory and moving lower towards their mid-lines.
Ether Price Grinding Lower
There were a lot of swing moves this past week and Ether mostly remained in a bearish trend against the US Dollar and Bitcoin.
The ETH/USD pair declined sharply towards the $200 handle and traded as low as $209. A short-term double bottom pattern was formed near $210 which ignited a rally.
The pair traded higher and there were two solid bullish candles formed on the daily chart. However, the upside move was prevented by an important contracting triangle (descending) pattern at $315-320.
The pair is again moving lower and the last three daily candles are signaling a short-term bearish bias. It seems like the pair is following a declining path and might retest $210.
The $210-200 support is crucial for the larger bullish trend. It already protected declines on two occasions and if the pair attempts a break for the third time, it might struggle.
The chances of buyers defending a break and close below $200 are very high. If they fail, Ether’s price may form a medium-term downtrend with high possibilities of it testing $120-100.
On the upside, ETH/USD needs to overcome offers near the contracting triangle resistance at $290. Once there is a proper daily close above $290-300, the price might gain bullish momentum for a move towards $400 at least.
The 2 hours chart is also pointing a similar picture. There is a descending channel with resistance at $280. The pair may continue to decline in the near term and could even break the channel support at $250.
To sum it up, the $210-200 support holds the key and must remain intact for Ether to avoid major declines.