ETH/USD Forecast: Bullish Bias Intact
|Ether continues to trade higher against the US Dollar, but struggling to gain momentum above $320.00.|
|ETH/USD broke a short-term bearish trendline at $315.00 on the 2-hour chart, which is a positive sign.|
|ETH/BTC fight to recover continues and it remains well below 0.080BTC (support turned resistance).|
Technically, the 6-hour chart indicators are flat in the bullish territory.
Ether Price Holding Trend Support
The ETH/USD pair is trying to recover above the $320.00-325.00 resistance zone. On the other hand, the ETH/BTC pair remained range bound above 0.075BTC and is prepared to test the 0.080BTC resistance.
Let’s start with the 2-hour chart of ETH/USD, which showcases a couple of important bullish signs. First, there is a crucial bullish trendline with current support at $316.00. Second, the pair broke a short-term bearish trendline at $315.00.
It seems like a 3-wave structure is forming, with the pair currently in the third wave from the $293.11 low. The mentioned third wave could end anywhere above the 61.8 percent Fibonacci retracement level of the last decline from the $345.24 high to $293.11 low.
That being said, the trend line support and recent upside break point to an extended upside move above $325.00 in the near term. Above $325.00, the $345.24 high is the next major resistance.
From a price action perspective, the ongoing shallow bounce in ETH/USD is not enough to take the pair above the $340.00 level. Only an increase in volumes and a strong move above $325.00 could ignite a substantial rally in the near term.
The short-term bearish pressure on Ether has swung back to the upside and a test of the $325.00 resistance would not be surprising. Looking at the 6-hour chart of ETH/USD, a resistance turned support awaits at $315.00 followed by a bullish trend line at $304.00. The latter level is crucial and a very strong support now.