ETH/USD Rally Faded Soon, Eyes Support
|Ether price spiked higher against the US Dollar, and traded as high as $10.70 before turning down.|
|There were a couple of bullish breaks on the hourly chart of ETH/USD like a bearish trend line and $10.55 resistance.|
|The 4-hour chart has a rejection candle near $10.70, but the price is currently finding support around $10.55.|
Technically, the hourly chart indicators turned bullish, but later lost momentum.
Ether Price Forecast
Yesterday, we saw how Ether price was facing resistance near $10.55 against the US Dollar, and highlighted the possibility of a spike higher above $10.60.
The price did move higher, cleared a couple of hurdles during the upside move. The main was $10.55-10.60 resistance and a bearish trend line on the hourly chart of ETH/USD.
There was also a move above the 23% Fibonacci retracement level of the last decline from the $11.00 high to $10.41 low. The price later moved close to the 1.236 extension of the last decline from the $10.66 high to $10.41 low.
The upside move found resistance near $10.70, which acted like a strong barrier and pushed the price down. ETH/USD corrected below the 38.2% Fibonacci retracement level of the last leg from the $10.41 low to $10.70 high.
However, the $10.55 support came into the picture, and prevented any further losses. The pair is now back above the stated level, and attempting to move higher.
On the other hand, the 4-hour chart of ETH/USD signals caution. The last candle around $10.70 seems to be a rejection signal. It looks like a shooting star candle, which means the price was rejected near $10.70, and could move down further.
However, the $10.55-10.50 support holds the key. As long as the price stays above the stated support area, there is a chance of a push higher back towards $10.70.
Overall, the recent break is not convincing, but highlights a few positive signs for buyers in the near term.