ETH/USD Forecast: Ether Approaching Crucial Support
|Ether declined recently and failed to hold the $298.00 support against the US dollar.|
|ETH/USD is approaching two important trendlines with support near $285.00 on the 6-hour chart.|
|ETH/BTC was seen consolidating losses around the 0.068BTC level.|
Technically, the 6-hour chart indicators turned lower and are reaching neutral levels.
Can Ether Price Bounce Back?
In yesterday’s ETH/USD analysis, we discussed two support levels – $298.00 and $295.00. The pair failed to hold the mentioned support levels and even surpassed the $290.00 level.
A low was formed at $286.71 from where the pair started correcting higher. Looking at the 2-hour chart of ETH/USD, the pair is forming a nice bullish candle from the $288.00-286.00 support.
On the upside, there is a key bearish trendline forming with resistance at $300.00 on the same chart. There’s also a declining pattern forming with consecutive lower highs.
Again, it has come down to a close above the $300.00 level. Ether has to overcome the $300.00 hurdle in order to avoid any further declines in the near term.
In the hourly chart, Ether’s price settled below all of its moving averages, although the 200 SMA remains flat, indicating that the bullish trend has lost momentum, at least temporarily.
There are two important points to note when looking at the 6-hour chart of ETH/USD. First, there is a crucial support forming near $285.00 with two bullish trendlines. Second, there is a connecting bearish trendline with current resistance at $299.00-300.00.
Overall, it seems like the pair is forming a contracting triangle with resistance at $300.00 and support near $285.00. The stated $285.00 support should hold the current decline. Otherwise, there lies a risk of an extension towards $265.00.
The technical indicators suggest a short-term bearish stance, having turned flat, but given that they hold within a negative territory, upsides in ETH/USD seem to be limited by $300.00.