ETH/USD Forecast: Reversal Signal is Forming?
|Ether came under renewed bearish pressure and broke an important support at $270.00 against the US dollar.|
|ETH/USD has breached a crucial trendline support at $270.00 on the 6-hour and 2-hour chart.|
|ETH/BTC extended its decline by around 6 percent and broke the 0.105BTC support.|
Technically, the 2-hour chart indicators are turning bearish and signaling chances of further declines.
What’s Stopping Ether Price from Moving Higher?
In yesterday’s ETH/USD analysis, we analyzed a critical support area near $270.00 and were looking for Ether to extend gains above $280.00.
However, the pair failed to gain momentum and started a downside move below $275.00. The decline was such that even the $270.00 support failed to hold losses.
Sellers also succeeded in breaking a key bullish trendline on the 2-hour chart of ETH/USD at $270.00. It’s a short-term bearish signal calling for a test of the last swing low of $250.00.
There is a crucial bearish trendline on the upside with current resistance as $272.00. It’s the main reason why Ether failed to break $282.00 and moved lower.
Looking at the 6-hour chart, there’s a similar picture. The pair broke a key bullish trendline at $270.00. On the upside, there are two key bearish trendlines stopping gains above $280.00-290.00.
The pair is now below the 50 percent Fibonacci retracement level of the last leg from the $209.00 low to $321.00 high, signaling completion of the last bullish wave from $250.00 to $321.00.
If the recent break is real, there’s a chance of Ether extending its decline and moving towards $220.00-210.00 support.
An intermediate support is at $250.00 which might hold the current decline in the short term. However, the price needs to break the trendline resistance at $280.00-290.00 to completely overcome bearish pressure from the $321.00 swing high.
In the short term, bearish pressures are definitely on. Supports can be found at $250.00 (July 01, 2017, low), $220.00 and $209.00 (June 27, 2017, low).