ETH/USD Weekly Forecast: Medium-term Bullish Trend Intact
|Ether came under pressure during the past two sessions and moved below $305.00 support against the US Dollar.|
|There is a major medium-term bullish trend line support forming near $275.00 on the 12-hour chart of ETH/USD.|
|ETH/BTC declined heavily and settled below 0.080BTC due to a sharp rise in Bitcoin price.|
Technically, the 12-hour chart indicators started correcting the overbought levels.
Ether Price Turned Short-term Bearish?
Yesterday, we discussed a major short-term support at $305.00 against the US Dollar. However, Ether’s price failed to hold the $305.00 support and even broke the $300.00 handle.
Recent losses in Ether were mainly by heavy buying of Bitcoins, increasing bearish pressure on both ETH/USD and ETH/BTC. The latter one traded lower by more than 12% towards 0.074BTC.
Market sentiment for Ether is still positive versus the US Dollar. Let’s start with the 12-hour chart of ETH/USD, pointing a couple of important support levels for the current medium-term bullish trend.
It seems like the pair is forming a short-term top at $319.06. The last 5-6 candles suggest trend exhaustion, which could result in an extended correction. Furthermore, the current H12 candle is a bearish outside candle pattern. If the price closes below $300.00, it would confirm a short-term top.
On the downside, there is a crucial bullish trend line forming with support at $275.00. Below mentioned $275.00, a key horizontal support sits at $250.00. Therefore, despite of the recent downside break, ETH/USD still remains in a medium-term bullish trend with support at $275.00 and $250.00.
Furthermore, the 50 percent Fibonacci retracement level of the last wave from the $179.24 low to $319.06 high is also at $250.00.
Moving down to the 2-hour chart of ETH/USD, there was a break below a major bullish trend line at $305.00. The pair tested $290.00 and might test the next support at $280.00 in the near term.
An intermediate support sits at $285.00 which is the 50 percent Fibonacci retracement level of the last wave from the $251.65 low to $319.06 high.
To sum up, Bitcoin price rise may drag Ether’s price further lower towards $280.00 or $275.00, but the overall medium-term bullish trend is still intact for ETH/USD.