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.

Ether Price Technical Analysis Chart

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.

Ethereum ETH/USD Pair Analysis

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.

Important Resistance Levels
$12.45 and $12.60
Important Support Levels
$12.20 and $12.10
30-min RSI
The RSI technical indicator is moving away from the overbought levels, signaling a correction.
30-min MACD
The MACD is strongly placed in the bullish zone, but signaling loss of momentum.
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The content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.

Ether Technical Analysis

12-04-2016 ETH/USD Weekly Forecast: Odds of Further Declines Increase
09-18-2016 ETH/USD Weekly Forecast – Uptrend Initiated
09-17-2016 Ether Price Spikes, Breaks All Boundaries
09-16-2016 Ether Price Retreats From Critical Resistance Level
   

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