ETH/USD Weekly Forecast: Risk of Upside Break Grows

It was an hectic week for Ether, as it corrected lower against the US Dollar by more than $100. The ETH/USD pair dipped from $414.00 to $261.00 to complete a correction.

This dip in ETH/USD was much needed and resulted in increased buying interest in Ether during the past few days. After declining towards $260.00-250.00, the pair recovered, and moved above the 50% Fibonacci retracement level of the last decline from the $414.00 high to $256.00.

It means there are high chances of ETH/USD retesting the last swing high of $414.00, should buying interest remain intact, the pair may look to challenge the previous mark, setting a new all-time high.

There’s a major ascending channel pattern with support at $350.00 forming on the 2-hour chart, which can be considered as the current trend’s support.

As long as the price stays in the channel, it may trade towards a crucial resistance of $395.00-400.00. On the downside, there is a weekly support base at $320.00,

Looking at the 12-hour chart of ETH/USD, it is quite clear that Ether is back in bullish territory. With a break above a key bearish trend line at $350, the pair is now approaching the uptrend resistance of $400.00.

On the downside, there are two significant bullish trend lines with support around $300.00, which can be termed as a long-term support.

To sum up, Ether is a good buy as it is gaining bullish momentum above $350.00 and is likely to extend gains in the near term as long as it stays above the $320 support area.

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