ETH/USD Forecast – Can Ether Buyers Push Prices Higher?
|Ether price after briefly trading below $8.00 against the US Dollar in August recovered, but the upside was limited.|
|There is a crucial resistance formed on the daily chart of ETH/USD, which acted as a hurdle for more gains in ETH.|
|A daily close above $12.00 is needed for ETH to make way towards $15.00 once again.|
The momentum technical indicator is fading on the daily chart, which may produce some strange moves in the near term.
Ether Price Resistance
Ether sellers during the start of this month produced a sharp fall in prices versus the US Dollar. It was more due to the market sentiment and speculators. There was a move below the $8.00 support, but later the price managed to recover.
The ETH/USD pair moved higher and traded towards the 61.8% Fib retracement level of the last drop from the $14.92 high to $7.88 low. It is where the Ether faced sellers and the price started bending down once again.
The pair since then slowly and steadily grinded lower. If we have a look at the daily chart of the ETH/USD pair, there is a bearish trend line formed. It is acting as a catalyst for the downside move and preventing gains. A break above it is need for the buyers to step in. Moreover, a daily close above $12.00 would be better to signal a change in trend from bearish to bullish.
On the downside, the 38.2% Fib retracement level of the last wave from the $7.88 low to $12.80 high is a support area at $10.80-60.
A break below the stated support area may ignite further downsides in the near term in ETH/USD. However, in my view the chances of trend line break are more going forward.