ETH/USD Continues to Struggle Near Major Range Highs
|Ether price recovered after a strong decline from $11.60 to $11.20 against the US Dollar.|
|However, the price remains capped near the $11.50-11.60 resistance.|
|Continuous failure near the stated resistance might ignite yet another downside move in ETH/USD.|
Technically, the 4-hours chart indicators look exhausted in the bullish territory, which can be a sign of concern.
Ether Price Recovery after Strong Downside Rejection
Yesterday, we saw a strong decline in Ether price from $11.60 against the US Dollar. It later found support near $11.20 and started a recovery.
There was no close below the crucial bullish trend line support at $11.25 (as highlighted in yesterday’s post on the 2-hour chart). Since there was no close, the price was able to recover.
A higher high wave was initiated, as the price was able to clear the 50% Fibonacci retracement level of the last decline from the $11.61 high to $11.20 low. However, the $11.50-11.60 resistance area again came into action and prevented the upside move.
As it can be seen in the hourly chart of ETH/USD, the pair was rejected, and now trading near a bullish trend line with support at $11.38. It looks like the price may consolidate for some time before it can attempt another upside break.
It needs to clear the recent high to set the pace for further gains. The 4-hour chart clearly highlights how important the $11.60 resistance is turning out to be. There were 4-5 failures so far, and it looks like an upside break won’t be easy.
On the downside, the pair is finding support near a bullish trend line at $11.25-11.30. The last candle on the chart is a strong bearish signal, but the highlighted trend line support holds the key. Overall, it looks like on the upside, $11.60 is important, and on the downside $11.20.