Technically, the 2-hours chart suggests a classic trend line bounce for an upside move.
Ether price was under a minor correction pattern against the US Dollar yesterday, which saw an end recently. I highlighted a major support area for ETH/USD yesterday, and was hoping for it to produce a bounce. The pair did bounce and traded above the $12.00 handle, and my idea of buying dips worked.
The pair’s downside move found support near the 50% Fib retracement level of the last wave from the $11.49 low to $12.16 high. Once the Ether buyers stepped in, there was a nice upside reaction. The ETH/USD pair even managed to clear a bearish trend line formed on the 30-min chart.
The last few candles on the chart clearly suggest that the recent upside move convincing, and there can be more gains in Ether price. The price traded as high as $12.05 and currently consolidating gains.
If there is a downside move, then the broken resistance trend line may now act as a support area. When we look at the 2-hours chart of ETH/USD, there is a picture perfect trend line bounce.
I highlighted a bullish trend line yesterday on the H2 chart, and pointed out that the price may bounce soon. The price did as forecasted, and going forward I believe we may see a test of the last high - $12.16 as long as the trend line support is intact.