ETH/USD Weekly Forecast: Ethereum Price Remains Vulnerable
|Ether’s price recovery from $200.91 against the US Dollar is facing many challenges on the upside.|
|There is a monster resistance zone near $275.00-295.00 on the daily chart of ETH/USD.|
|ETH/BTC continues to face heavy offers near the 0.070BTC resistance.|
Technically, the daily chart indicators are stable, but well below their midlines in the bearish territory.
Ether Price Facing a Major Challenge
There were more than seven back-to-back bearish candles formed on the daily ETH/USD chart before the pair found support near $200.00. A new two-month low was formed at $200.91.
During the downside move, there was a break of a major support area at $275.00. The stated $275.00 level is now a key resistance for the current recovery.
To the upside, there is a resistance zone forming near $275.00-295.00 (pivot levels) as well as a bearish trendline on the same chart. Should there be a daily close above $295.00, the price would move back in the bullish zone.
That said, it won’t be easy for Ether buyers to push the price above the mentioned $295.00 level since it is the 50 percent Fibonacci retracement level of the decline from the $395.41 high to $200.91 low.
On the downside, a crucial support zone near $190.00-175.00 (both monthly pivot levels) is waiting to hold losses if ETH/USD turns lower once again.
Moving on to the 2-hour chart, the pair recently found resistance near the 61.8 percent Fibonacci retracement level of the decline from the $316.17 high to $200.91 low at $272.00.
The price is slowly grinding lower and already moved below the 23.6 percent Fibonacci retracement level of the recent wave from the $200.91 low to $272.41 high. If the current bias remains intact, the price could drop back towards the $220.00-223.00 support.
An intermediate support is near the 50 percent Fibonacci retracement level of the recent wave from the $200.91 low to $272.41 high at $236.00.
Overall, steady gains above $275.00 should see ETH/USD accelerating north, with Ether sellers finding an unfavorable market. The $280.00 area comes next, en route to the $295.00 price zone, where the pair had multiple daily highs and lows. Supports on the other hand, are present at $236.00, and $223.00, and a menacing $200.00 should conditions turn bearish.