Technically, the 12-hours is showing that ether price may come back to life soon.
Ether Price Analysis
Let us start with a recap of this past week. There was a bullish wave in Ether price against both the US Dollar and Bitcoin this past week. Both ETH/USD and ETH/BTC pairs traded with a positive tone, and registered good gains. Later, they both found sellers and started a correction wave.
The ETH/USD pair during the recent correction traded from a high of $14.31 to $12.71. It is now finding support and attempting to move back higher. When we look at the hourly chart, there is a bearish trend line formed, protecting an upside move in ETH/USD.
There is also a major resistance area formed at $13.50 (as highlighted in yesterday’s post), which is protecting gains. The stated resistance also coincides with the 50% Fibonacci retracement level of the last drop from the $14.31 high to $12.70 low. So, it won’t be easy for the buyers to break it.
First, if the Ether buyers manage to break the trend line resistance, there is a chance of a retest of $13.50. Any further gains may put the price back in the bullish area with a potential of a move towards $14.20.
When we look at a higher time frame chart like 12-hours, we can see a lot of reasons why ETH/USD remains supported. There are two critical bullish trend lines formed on the chart, which may act as a barrier for sellers on the downside.
Moreover, the chart also shows why the $13.00-$12.80 area is a significant support and may act as a buy zone. So, if you are looking to buy Ether, then consider placing a stop below the highlighted trend lines.