ETH/USD Forecast: Could This Be A False Break?
|Ether declined yesterday and broke an important support at $288.00 against the US Dollar.|
|ETH/USD later recovered, but remains at a risk of further declines.|
|ETH/BTC is holding the 0.070BTC support very well which is a great sign for the overall market sentiment.|
Technically, the hourly chart indicators started moving higher after reaching oversold levels.
Can Ether Price Stay Above $275?
In yesterday’s analysis, I pointed out that Ether is approaching a crucial break with support at $288.00-285.00 against the US Dollar.
The ETH/USD pair failed to hold the $288.00 support and broke a key bullish trend line on the 6-hour chart. It even cleared the $280.00 and $275.00 support levels, trading at a new weekly low of $271.36. However, the $270.00 level prevented further declines and protected from a move towards $260.00.
The price retreated and recovered well from $271.36, giving the candle formed on the 6-hour chart a long tail. It can be considered as a rejection signal, but the price has to move above $300.00 to confirm it.
Let’s move to the hourly chart to analyze whether ETH/USD can extend its recovery from $271.36 or not. Clearly, the last few candles are pointing at an improved buying interest above $270.00.
The pair has already moved above the 23.6 Fibonacci retracement level of the last decline from the $306.44 high to $271.36 low.
At the moment, the pair is attempting a close above a bearish trendline at $288.00 on the same chart. The mentioned $288.00 level is also the 50 Fibonacci retracement level of the last decline from the $306.44 high to $271.36 low.
It seems like Ether buyers might succeed in taking the price above $290.00, but the price has to settle above $300.00 to avoid any further declines.
Overall, the recent setback below $280.00 could be a false break as long as the price stays above $275.00.