ETH/USD Weekly Forecast: What’s Preventing Further Gains?
|We saw this past week a major decline in Ether price versus the US Dollar and Bitcoin.|
|Later, the price recovered, and both ETH/USD and ETH/BTC pairs registered gains.|
|However, the current recovery in ETH/USD is facing a crucial bearish trend line formed on the 12-hours chart.|
Technically, the 2-hours chart indicators are mild bullish and struggling to hold the bias.
Ether price struggle to hold bullish bias
During the past 24 hours, there was no real move in Ether price against the US Dollar and Bitcoin. The price mostly traded in a range and consolidated the recent gains.
When we have a look at the 2-hours chart of ETH/USD, a few things are clear. First, the recent high at $8.89 is now a monthly pivot and a major resistance.
Second, there is a critical support area at $8.00, as highlighted in a previous post as well. It also holds a lot of importance since the 23.6% Fibonacci retracement of the recent wave from the $5.84 low to $8.89 high is positioned near it.
The ETH/USD pair was already rejected near $8.00 on two occasions. So, it is safe to say that we have a resistance at $8.90 and support at $8.00. A range pattern if formed, which can also be seen as a consolidation pattern.
So, the pair may trade in a range for some time before making the next move. Now, when we have a look at the 12-hours chart of ETH/USD, there is a very different picture visible.
A monster bearish trend line on the upside is acting as a resistance and acting as a barrier for further gains at present. It is one of the main reasons why the pair is not able to break the $8.90 and $9.00 resistance levels for further gains.
As long as the price is below the highlighted trend line and resistance area, it would be very difficult for the Ether buyers to ignite a move above $9.00. Overall, we need to keep a close watch on the stated support and resistance area for the next move and break in ETH/USD.