ETH/USD Forecast: Ethereum Price Faces Tough Task
|Ether managed to stay above the $275.00 support against the US dollar, but remains at risk.|
|There is a major resistance forming near $310.00 on the 6-hour chart of ETH/USD.|
|ETH/BTC is back above the 0.070BTC support and is currently consolidating.|
Technically, the 2-hour chart indicators are stable and recovering from the oversold readings.
Can Ether Price Stay above $275.00?
The ETH/USD pair consolidates around $295.00, after a modest pullback at the beginning of the day met buying interest at $280.00. Similarly, the ETH/BTC pair registered a decent recovery and is trading back above the 0.070BTC support.
The 2-hour chart of ETH/USD suggests how buyers succeeded in defending the $280.00-275.00 support area. The pair recovered and moved above the 38.2 percent Fibonacci retracement level of the last decline from the $341.68 high to $281.11 low.
However, recoveries were limited as the pair struggled to move above the $310.00 resistance and the 50 percent Fibonacci retracement level of the last decline from the $341.68 high to $281.11 low.
There is a clear horizontal resistance forming near $310.00. Should there be a break above $310.00, Ether’s price is likely to trade towards a bearish trendline on the same chart at $322.00. Above $322.00, the price would easily trade towards the last major hurdle of $340.00.
The 6-hour chart of ETH/USD shows that the 50 SMA maintains a strong bearish slope below the current level, now providing a dynamic support around $275.00.
On the upside, there are two bearish trendlines positioned near $310.00 which are a crucial barrier for buyers. It won’t be easy for buyers to push the price above $310.00 and overcome selling pressure in the near term.
A positive sign would be a daily close above the 23.6 percent Fibonacci retracement level of the last drop from the $395.41 high to $275.82 low at $304.00.
Below $290.00, on the other hand, a downward extension can develop down to $280.00, while the next support comes at $275.00. Overall, there can be more corrective moves but as long as ETH/USD is above $275.00, it can recover in the short term.