Technically, there is likely a topping signal on the hourly chart, calling for a correction.
Ether Price Support Levels Vs US Dollar
There was an increase in the bearish pressure on the US dollar after the December FOMC meeting minutes were published. Ether price took advantage of the same and moved past the $11.00 handle.
The ETH/USD pair was seen gaining pace during the past few hours, and after breaking $11.00, it moved above the $11.50-60 resistance. A new year high was formed at $11.87 where it found resistance.
Later, the pair started correcting lower. When we look at the hourly chart of ETH/USD, there are two bullish trend lines. The pair is currently attempting a break below them. The most important point is the fact that the candle formed near $11.87 shows a topping pattern.
It is a shooting star, suggesting that a short-term top is in place, and the price may soon correct lower. An initial support on the downside is around the 23.6% Fibonacci retracement level of the last leg from the $9.55 low to $11.87 high.
However, a substantial support on the downside is at $11.00, which if cleared might open the doors for the 50% Fibonacci retracement level of the last leg from the $9.55 low to $11.87 high.
Looking at the 4-hour chart, there are many bullish candles back to back, which has not happened during the recent times. So, the trend is bullish for sure, but there is a chance of a short-term correction towards $11.00 or even $10.50.