ETH/USD Forecast: New Leg Higher Underway
|Ether most likely completed yesterday’s initiated correction wave at $280.00 against the US dollar.|
|The ETH/USD pair followed the lead of the crucial bullish trendline at $280.00 on the 4-hour chart.|
|ETH/BTC remained well bid above the 0.085BTC support and is eyeing a break above 0.090BTC.|
Technically, the 4-hour chart indicators are moving higher once again after retreating from the overbought conditions.
Ether Price Approaching Support
Yesterday, the ETH/USD pair started a short-term correction and moved below $300.00. It traded towards the $280.00 support area where strong buying interest prevented further declines.
Looking at the hourly chart, the pair bounced perfectly from a bullish trendline at $280.00. The pair resumed its uptrend and broke a connecting bearish trendline at $297.50.
It is currently following a bullish trendline with support at $297.00 and eyes a proper close above the $300.00 handle. Considering the fact that the price is above the 50 percent Fibonacci retracement level of the last decline from the $314.58 high to $278.72 low, the pair might continue to trade higher.
If buyers remain in control, the pair may soon retest the recent high of $314.58. On the downside, the first bullish trendline at $297.00 is an initial support. The next major buy zone is near the second bullish trendline with current support at $284.00.
Moving on to the 4-hour chart of ETH/USD, the recent rejection near $280.00 was from a crucial bullish trendline. If the trendline continues to protect losses, the pair would remain in an uptrend.
A break below $280.00 should lead to an extension down to $275.00, with additional slides targeting $260.00. There is an important bullish trendline at $252.00 which holds the key for the current uptrend.
Ether is poised to extend its rise given that, in the hourly chart of ETH/USD, the pair has extended further above a bullish 20 simple moving average.