ETH/USD Forecast: Recovery Kicks In
|After trading as low as 133.79, ETH/USD formed a short-term support and started recovering.|
|The pair was able to break a bearish trend line at $160.00 on the hourly chart to initiate a recovery.|
|ETH/BTC succeeded in holding 0.080BTC and moved above 0.085BTC.|
Technically, the 4-hour chart indicators are recovering from the extreme oversold readings.
Ether Price Strong Recovery in View
The ETH/USD pair started the week on a bullish note, yet faces many hurdles on the way up near $175.00 and $200.00.
The pair traded at a new monthly low of $133.79 before finding fresh bids. A short-term bottom was formed near $135.00 and the pair started recovering sharply above $150.00.
To initiate an upside, there was a break above the 23.6 percent Fibonacci retracement level of the last decline from the $198.50 high to $133.79 low. Later, buyers succeeded in clearing a bearish trend line at $160.00 on the hourly chart.
The price gained bullish momentum and went through the 50 percent Fibonacci retracement level of the last decline from the $198.50 high to $133.79 low. It is a positive sign since the price is following an ascending channel, but buyers need to be cautious going forward.
When we look at the 4-hour chart of ETH/USD, the last three candles are bullish. The pair is currently testing the previous support turned resistance at $175.00 which also coincides with a bearish trend line.
Above $175.00, there is a crucial long-term bearish trend line positioned at $200.00. Therefore, even if the pair succeeds in moving above $175.00, it could face strong offers near $200.00.
Should there be a close above $200.00 in the coming sessions, Ether’s price would be back in the bullish zone. Until then, ETH/USD recoveries are most likely to remain corrective in the short term.
To sum up, the pair stands at key resistance points and looking to regain bullish bias. On the other hand, the downside potential is limited as long as the price remains above $140.00.