Technically, the hourly chart indicators moved back in the bullish territory and signalling gains.
Ether Price Recovery a Positive Sign
Yesterday, we saw how there was a sharp decline in Ether price against the US Dollar after China’s bitcoin exchanges, Huobi and OKCoin decided to pause bitcoin and litecoin withdrawals.
However, the downside was well prevented near a major support area at $10.60. The stated level was highlighted as a crucial barrier for more downsides yesterday.
It did act as a solid support, and as a result, the ETH/USD pair recovered well. The hourly chart clearly highlights how the pair was rejected. The pair formed a base near $10.60-10.70, and moved higher.
The upside move was such that the $11.00 hurdle was broken easily. However, the $11.25-11.30 area is playing its part well.
It was a support earlier before the price broke down, and now acting as a resistance and preventing further gains.
The best part is the fact that the price is now back above the 50% Fibonacci retracement level of the last decline from the $11.61 high to $10.62 low. It is a positive sign, and could lead to more upsides in the near term.
However, if Ether price has to extend gains, it has to clear the $11.25-11.30 resistance. Once it does, it might open the doors for a move towards $11.60, which is next resistance and a weekly pivot for ETH/USD.
On the downside, the $11.00 level may now act as a support and can be considered as a buying area in the short term.