Technically, the 4-hours chart is now pointing a short-term top, which could produce a minor correction.
ETH/USD New High
Ether price after a test of the $11.90 support against the US dollar bounced sharply and traded higher. I highlighted a major bullish trend line on the 2-hours chart of the ETH/USD pair, and was looking for an upside move. The price did move higher and posted a new weekly high of $12.59.
The price after creating a new high found offers and currently correcting lower. If we look at the 30-min chart of ETH/USD, a clear break of a consolidation pattern is visible.
The $12.10 resistance was a major barrier, which was cleared during the recent upside move. The same level may now act as a support. It also represents the 61.8% Fib retracement level of the last wave from the $11.77 low to $12.59 high. So, it holds a lot of value and might act as a buy zone.
If we look at a higher time frame chart, then the 4-hours chart also signals a major break. There was a contracting triangle pattern, which was cleared during the recent upside move.
However, the top $12.59 candle is signaling a short-term bearish pattern. It looks like an inverted hammer or even a shooting star. It means there is a chance of a downside move. The price is already correcting and may trade towards the $12.10 level. In that situation, the mentioned level can act as a major hurdle for sellers and may provide support.