ETH/USD Forecast: Ether Eyes Last Line of Defense
|Ether continues to trade in a range between $285.00-295.00 against the US dollar.|
|A crucial support near $285.00-280.00 is in place on the 6-hour chart of ETH/USD.|
|ETH/BTC corrected higher but is struggling to clear the 0.070BTC resistance.|
Technically, the 30-minute chart indicators are gaining momentum in the bearish territory.
Ether Price Might Soon Break the Wall
Yesterday, we discussed an important support area for ETH/USD near $285.00. The pair held the mentioned $285.00 support and challenged the $295.00 resistance.
Starting with the 6-hour chart of ETH/USD, two bullish trendlines with support near $285.00 are intact and might continue to act as a strong barrier for a downside break.
It seems like there is a key support base forming above $280.00. As long as Ether’s price is above the $280.00 support, there could be an upside break soon. To the topside, there is a bearish trendline forming with current resistance at $298.00 on the same chart.
Overall, as discussed yesterday, there is a contracting breakout pattern forming with support above $280.00 and resistance just below $300.00. The price could soon break either $280.00 or $300.00 and make the next move.
A close above $300.00 would be a strong bullish sign for a rally towards $320.00 or higher. On the flip side, a close below $280.00 could trigger a downside reaction towards $250.00.
Dropping down to the 30-minute chart of ETH/USD, the pair recently tested the $295.00 resistance and failed to settle above it. As a result, a downside move was initiated and the pair broke a couple of bullish trendlines at $294.00 and $291.00.
If the current momentum stays intact, the price could retest $286.00. In the short term, the risk remains towards the upside as long as losses remain above $280.00, a major technical support, with a break above $295.00, probably resulting in a bullish extension towards $298.00 (trendline resistance).