ETH/USD Forecast: Ether Retreats from $350
|Ether rose to a new monthly high of $350.28 against the US Dollar before correcting lower.|
|The previous resistance at $335.00 acted as a support and prevented declines in ETH/USD.|
|ETH/BTC recovered and moved towards the 0.080BTC pivot.|
Technically, the hourly chart indicators corrected the overbought levels, but remain in the bullish territory.
Ether Price Remains in Uptrend
In the weekly forecast, we discussed the chances of ETH/USD breaking the $345.24 high. The pair did move past the mentioned benchmark before trading at a new monthly high of $350.28.
The overall market sentiment improved and helped ETH/BTC to recover from 0.075BTC. The pair is currently approaching an important support turned resistance at 0.080BTC.
The hourly chart of ETH/USD shows a strong sell wall near $350.00. There were two attempts to surpass that mark, but buyers failed to gain momentum. As a result, a correction wave was initiated below $345.00.
The pair moved down and traded towards the $335.00 support (previous resistance) and two bullish trendlines. The trendlines and the $335.00 level acted as a strong support, preventing further declines in Ether’s price.
The 50 percent Fibonacci retracement level of the last leg from the $325.72 low to $350.28 high also played its part and prevented sellers from taking control. The pair is currently moving back into the bullish zone and eyeing a retest of $345.00.
Looking at the 4-hour chart of ETH/USD, the pair was rejected from a connecting resistance trendline at $350.00. On the downside, the pair is holding a crucial bullish trendline with current support at $337.00.
A successful hourly close below $337.00 followed by $335.00 would take the price further lower towards the next bullish trendline at $326.00.
The ETH/USD pair presents a bullish stance in the near term, albeit the mentioned $345.00-350.00 region has proved strong multiple times and would need to surpass it before rallying up to $375.00, another strong static resistance area.