Ethereum Forecast: ETH/USD Could Continue To Trade Higher
Ether gained traction above $360.00 against the US dollar while remaining stable versus bitcoin. ETH/USD is now well supported above $340.00 for further upsides.
Key Highlights
a) Ether made a nice upside move and traded above $370.00 against the US dollar before correcting lower.
b) There is a major support area forming near $340.00 on the 4-hour chart of ETH/USD.
c) ETH/BTC is stable around 0.044BTC but shows no sign of a bullish move.
Technically, the 4-hour chart indicators remain elevated in bullish territory.
Ether Price Remains Supported
The past three sessions were very bullish for ETH/USD as the pair was able to move above the $360.00 level. A new monthly high was formed at $371.00 before a short-term correction was initiated.
Looking at the hourly chart of ETH/USD, there were back-to-back bullish candles which pushed the pair above the $370.00 level. Later, buyers struggled to retain momentum and the pair corrected below the 23.6 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
However, the downside move was protected by a crucial bullish trendline with current support at $355.00. There was a test of the 50 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
It seems like Ether completed a short-term correction near $348.00-350.00 and is currently following the trendline closely. On the upside, there is a connecting bearish trendline forming with resistance at $362.00.
A successful close above $362.00 would mean that the stated correction is over and Ether’s price will most likely resume its uptrend above $365.00 in the near term.
Should there be a break of the $355.00 support, the price could test the $340.00 support area and the 61.8 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
The 4-hour chart of ETH/USD shows the importance of the $340.00 support area. There is a bullish trendline with horizontal support near $340.00.
Therefore, any major dips from the current levels are likely to find buyers near $340.00. The overall trend remains bullish with resistances near $362.00 and $371.00.
- Important Resistance Levels
$362.00 and $371.00 - Important Support Levels
$355.00 and $340.00 - Hourly RSI
The RSI is currently near 62 and is moving north. - Hourly MACD
The MACD remains well positioned in the bullish zone.
source
https://www.ethnews.com/analysis/11-20-2017-ethereum-forecast-eth-usd-could-trade-further-higher