Technically, the 4-hour chart shows a major rejection just below $12.00 in ETH/USD.
Ether Price Failure Near $12.00
We recently saw how Ether price surged higher against the US Dollar and Bitcoin. ETH/USD in particular enjoyed good gains and traded higher by more than 30%.
Yesterday, there was a move close to $12.00, as the price traded as high as $11.87. I highlighted a rejection pattern near the stated level, and mentioned that there is a chance of a short-term correction towards $11.00 or even $10.50.
The ETH/USD pair did move down, and broke a couple of important support levels to register a close below the $11.00 handle. It also pierced the 61.8% Fibonacci retracement level of the last leg from the $8.40 low to $11.87 high.
The downside move stopped just above the $9.00 level at $9.20. The price is currently moving back higher and positioned above the $10.00 support. An initial resistance is near the 50% Fibonacci retracement level of the last decline from the $11.87 high to $9.16 low.
If the Ether buyers manage to take the price back above the $10.80 level, there is a chance of the price retesting $11.80-$12.00. Looking at the 4-hour chart, there were two major bearish candles, suggesting a rejection pattern.
In my view, the $10.00 support holds a lot of importance. As long as the price is above it, and there is no daily close below it, there is a chance of ETH/USD regaining the bullish bias in the near term. If it fails to hold the $10.00 support, there can be a decline towards $9.00 or even $8.40.