Ethereum Forecast: ETH/USD Corrects Lower
|Ether failed to surpass the $313.00-314.00 resistance against the US dollar and started a short-term correction.|
|There is an ascending channel forming with support at $292.00 on the 4-hour chart of ETH/USD.|
|ETH/BTC declined sharply by more than 4% to trade near 0.066BTC.|
Technically, the 4-hour chart indicators have started showing minor bearish signs.
Ether Price Remains in Uptrend
In the ETH/USD’s weekly forecast, we discussed the failure to break the $313.00 resistance area and a probable downside move towards $305.00. The pair failed to hold gains above $313.00 and started a downside correction.
On the other hand, the ETH/BTC pair came under a lot of pressure and declined by more than 4 percent to trade near 0.066BTC.
Looking at the 4-hour chart of ETH/USD, there is an ascending channel forming with support at $292.00. The channel resistance, first at $311.00 and then at $313.00, prevented an upside break.
As a result, there was a downside reaction and the pair traded towards the 23.6 percent Fibonacci retracement level of the last wave from the $279.89 low to $313.93 high. The decline was protected by a connecting bullish trendline at $301.00.
The pair will most likely resume its upside move and trade back above $310.00 to test the channel resistance. Alternatively, a break of the trendline at $302.00 would ignite a fresh decline towards the channel support near $292.00 and the 50 percent Fibonacci retracement level of the last wave from the $279.89 low to $313.93 high.
Moving down to the hourly chart of ETH/USD, there was a break below a major bullish trendline with support at $311.00. At present, the pair seems to be struggling to move higher above a connecting bearish trendline with resistance at $307.50.
To sum up, Ether remains in an uptrend as long as the channel support at $292.00 is intact on the 4-hour chart. Above $307.50, on the other hand, ETH/USD will likely resume its rise, $313.00 being the next probable bullish target.