ETH/USD Forecast: $8.00 Remains Key Support
|Ether price extended yesterday’s upside move to trade a few points higher against the US Dollar and Bitcoin.|
|The ETH/USD pair moved towards $9.00 where it found resistance and started a correction.|
|The pair has a major support on the downside at $8.00, as highlighted in yesterday’s post.|
Technically, the 12-hours chart indicators turned bullish, but signaling exhaustion of the momentum.
Ether price to find support once again?
There was a minor upside move in Ether price, as it broke the last swing high of $8.72 against the US Dollar to trade as high as $8.89. The ETH/USD pair was just shy of testing a major resistance area at $9.00.
There was a correction leg initiated, which looks like a consolidation phase with a minor downside direction. The pair is moving down and already tested the 23.6% Fibonacci retracement of the recent wave from the $5.84 low to $8.89 high.
There was an attempt to test the $8.00 support area, but the price recovered after trading as low as $8.04. When we look at the 4-hours chart of ETH/USD, there is a clear support visible at $8.00.
It may act as a strong barrier for the price if it attempts to extend the current correction. The last three H4 candles are not convincing, and can be considered as three outside down pattern. It is a minor bearish signal, but as long as the pair is above $8.00, it can be invalidated.
However, if the pair breaks $8.00, then we can witness a test of the 50% Fibonacci retracement of the recent wave from the $5.84 low to $8.89 high at $7.36.
Let us also try to understand how important the recent upside break was in ETH/USD. The 12-hours chart suggests that a monster bearish trend line was cleared. So, it looks like the pair may correct a bit lower, but the $8.00 may come into rescue and act as a support.