ETH/USD Weekly Forecast: Ether Consolidating Losses
|Ether price made a minor new low against the US Dollar yesterday at $7.50 before attempting a recovery.|
|The ETH/USD pair is currently correcting higher, and attempting to break a short-term resistance at $7.85-90.|
|The 12-hours chart highlights a couple of important bearish trend lines on the upside waiting to act as a resistance.|
Technically, the 12-hours chart indicators suggest consolidation below neutral levels.
Ether Price Holding Downtrend Support
There were downward movements this past week in Ether price against both major USD and BTC. Whenever, the price attempted a correction, it faced resistance on the upside.
Yesterday, I highlighted a possible test of the 1.618 extension of the last wave from the $7.71 low to $7.92 high at $7.55. The ETH/USD pair did move down to create a new low at $7.50 before finding bids.
Currently, the pair is making a nice attempt to move higher. The 2-hours chart is showing positive signs, as the last 4-5 candles were bullish and calling for more gains.
The most important point is the fact that the pair broke a bearish trend line formed on the same chart at $7.70 to open the doors for a recovery. At the moment, it is attempting to break a short term resistance area at $7.85-90.
If the Ether buyers succeed in gaining momentum, there is a chance of a move towards $8.00. The stated level is another major resistance, as it coincides with the 50% Fibonacci retracement level of the last decline from the $8.50 high to $7.50 low.
A break above $8.00 is needed to negate the current bearish bias. There is another reason why $8.00 is very important. When we look at the 12-hours chart of ETH/USD, there are two bearish trend lines positioned around the same area.
These trend lines may act as a major hurdle for Ether price on the upside. On the downside, the downtrend support is at $7.50, which is a crucial level and must hold the current bearish sentiment.