Ethereum Forecast: ETH/USD Correction May Be Over
|Ether tested a crucial support area near $285.00 against the US dollar and started recovering.|
|ETH/USD is bouncing from a key bullish trendline with current support at $287.00 on the 6-hour chart.|
|ETH/BTC’s struggle continues and the pair fell towards the 0.062BTC support.|
Technically, the 2-hour chart indicators are back in the bullish territory.
Ether Price to Resume its Upside
There was a sharp decline yesterday in ETH/USD from $308.00 to well below $290.00. The pair tested a crucial support region near $285.00 and bounced back.
On the flip side, the ETH/BTC pair fell further and traded towards the 0.062BTC support. The main reason for the recent slide is a sharp rise in bitcoin price versus all major cryptocurrencies.
The 2-hour chart of ETH/USD is showing how $285.00 held the last decline and prevented further losses. As a result, the pair recovered and moved above the 50 percent Fibonacci retracement level of the last drop from the $313.93 high to $286.49 low.
The pair is currently approaching a short-term bearish trendline with resistance near $302.00. A 2-hour close above the trendline resistance and the 61.8 percent Fibonacci retracement level of the last decline, from the $313.93 high to $286.49 low, could open the doors for a push towards $308.00-310.00.
On the downside, the $295.00 level is an initial support followed by the all-important $285.00. Looking at the 6-hour chart, there is a key bullish trendline forming with current support at $287.00.
The recent rejection in ETH/USD was near the same trendline. A key positive sign on the chart is the last green candle, which suggests further gains in Ether in the near term.
To the topside, there is a significant resistance at $313.00-314.00. A successful close above $314.00 is required for buyers to regain traction. In the medium term, ETH/USD has been consolidating within a broader trading range of $285.00-315.00 over the past few days. Therefore, it would be sensible to wait for a decisive break in either direction before committing Ether price’s next directional move.