ETH/USD Forecast: Bullish Rally Takes a Breather
|The ETH/USD pair maintains the bullish phase with a strong support near $260.|
|Ether sellers fight back control over the past few hours, restricting the tepid-recovery around $290.|
|The ETH/BTC pair recovered slightly and moved above the 0.11BTC resistance.|
Technically, the 30 min chart indicators are moving lower in the bullish territory and pointing to correction.
Ether Price Forming Uptrend
The ETH/USD pair is in fresh decline from $291 zone on Monday and pressuring again $270 support where sellers attack was strongly rejected.
A downside wave was initiated from the $291 high and the pair broke a short-term bullish trend line at $279 on the 30 min chart. Ether is currently above the $270 support and following a bearish trend line with resistance at $275.
The $270 support is also the 50 percent Fibonacci retracement level of the last wave from $251 to $291. However, the strongest support for Ether on Monday sits at $260 (resistance turned support).
The fading upside momentum in ETH/USD suggests that a consolidation phase above $260 is likely in the short term. A move back above $280 would indicate that the correction phase has ended.
Any upside moves would target $291 (July 2, 2017 high). A break of this crucial resistance level would open the doors towards the June 28, 2017 high at $321.
Looking at the 2 hours chart, there are two positives to note. First, the pair recently broke a key bearish trend line at $275 which is acting as a support. Second, there is an important bullish trend line forming with current support as $260.
Ether is likely to hold the trend line support at $260 today for a bounce back towards $280. If it fails to hold $260, there can be a deeper correction towards $225.
ETH/USD might take a breather, but looking at the bigger picture, the uptrend that started from $209 (June 2017 low) is still intact.