ETH/USD Weekly Forecast - Price Back To Square One, Eyeing Support
|Ether price extended the recent correction wave against the US Dollar and failed to hold the $11.80 support.|
|The price is now trading near the most important support area of $11.50.|
|The ETH bulls defend the stated support area in order to maintain the bullish bias.|
Technically, the 12 hours chart highlights a major failure at $12.80, but also have a support trend line on the downside.
Ether Price Analysis
ETH to USD posted a high of $12.86 this past week, and then started a correction. However, the correction wave extended too far as it broke the 38.2% Fib retracement level of the last wave from the $10.05 low to $12.86 high.
A key support of $11.80 was broken, and now the price is heading towards the $11.50 support. The stated level is crucial since it was a hurdle for buyers earlier and may not act as a buying area. Moreover, the 50% Fib retracement level of the last wave from the $10.05 low to $12.86 high is also positioned near it.
The 2 hours chart of the ETH/USD pair clearly highlights the significance of the $11.50 support. It must prevent the current downside move if the buyers have to stay in the game. Otherwise, there is a chance that the pair may slip towards the $11.20 support.
When we move to the 12 hours chart of the ETH/USD pair, then there are a few important points to note. First, the price failed at $12.85, which was a resistance earlier as well. So, the price failing near it twice suggests that there can be a double top pattern.
Second, there is a bullish trend line on the same chart, waiting on the downside to provide bids to ETH/USD. In my view, the highlighted trend line support holds a lot of value. If the ETH sellers manage to break it, then the double top pattern could be justified.
The price may drop sharply in that situation. However, if the trend line manages to provide support and the price bounce, it would invalidate the double top pattern. So, it all depends on the how the trend line and $11.50 support plays in the short term.