ETH/USD Forecast: Limited Action and Consolidation
|Ether price made no major move during the past 24 hours against the US Dollar and Bitcoin.|
|There were mostly ranging moves in ETH/USD, as the pair failed to break higher.|
|There is a clear channel forming on the 2-hours chart of ETH/USD, signaling a consolidation pattern.|
Technically, the 2-hours chart indicators are flat and pointing limited action.
Ether Price Analysis
After setting a monthly high at $8.89, ETH/USD mostly traded in a range. There were many attempts by the pair to move higher once again, but it failed to gain traction.
There was a move towards $8.62 yesterday where the pair found sellers and started moving down. There is a bearish trend line formed on the 30-min chart, which is currently acting as a resistance and taking the pair down.
The price has already reached the 50% Fibonacci retracement of the recent wave from the $8.10 low to $8.62 high, which may act as a support. However, a major support is at $8.25. The next support on the downside is around the last swing low of $8.10.
So, if the ETH/USD pair continues to move down from the current levels, it may find bids around any of the highlighted support levels. When we move to the 2-hours chart, there is a clear range pattern visible.
The range support is near $8.00 and resistance around $8.80. It looks like the pair has been stagnent within the highlighted range, and may continue to consolidate.
In my view, the recent price action suggests that the pair is consolidating the recent gains after getting rejected near $6.00. So, there is a chance of more ranging moves before the pair attempts to trade higher one more time.
Overall, if you are looking to trade at this moment, then consider buying dips near the range support and selling around the range resistance.