ETH/USD Weekly Forecast: Crucial Week for Ether
|The ETH/USD pair struggled after trading as high as $414.66 and corrected lower during the past three weeks.|
|The pair is approaching a crucial break on the daily chart with support above $200.00 and resistance near $260.00.|
|The ETH/BTC pair closed the week below 0.100BTC support which is a bearish sign.|
Technically, the daily chart indicators are moving to and fro near their mid-lines.
Can Ether Price Break Higher?
The downward momentum for ETH/USD was reinforced by both rising 20-period and 50-period simple moving averages. The pair started a major correction phase from the $414.66 high and traded below the $300.00 handle.
Looking at the daily chart, there is a crucial breakout pattern forming with support just above $200.00 and resistance near $250.00-260.00.
On the upside, there is a major bearish trendline which is acting as a correction catalyst since the $414.66 swing high. Only a close above the trendline resistance at $260.00 would negate the current bearish bias and push the price back in the bullish zone.
On the downside, the $200.00 handle holds a lot of importance in the medium term. The $210.00-200.00 support is also the 61.8 percent Fibonacci retracement level of the last wave from the $85.00 low to $414.66 high.
As long as the pair is above $200.00, there is a high possibility of Ether price recovering and moving back into the bullish zone.
That being said, should a negative sentiment persists for a long time, the price might attempt a break and close below $200.00. It could have a strong impact on ETH/USD, and the pair may trade towards $160.00.
When looking at the 4-hour chart, there was a break below a key support at $250.00. On the upside, there is a bearish trendlines confluence near $255.00-260.00.
The $260.00 confluence resistance matches with the trendline resistance on the daily chart, pointing its significance.
To sum up, as long as $200.00 holds the downside, look for a break above $260.00 and even to $285.00 in extension. Alternatively, a break below $200.00 would bring a decline with $180.00 and $160.00 as targets.