There was a fresh wave of recovery in Ethereum price, but it failed right around a monster resistance area of $13.00, which holds the key for the next move in ETH/USD.
Ethereum price managed to correct a few points higher against the US Dollar during the past 24 hours.
Yesterday’s highlighted resistance area of $13.00-$12.80 in ETH/USD acted as a perfect barrier and stopped the upside move.
Ether price may move down once again as long as the stated resistance levels are intact.
The short-term ETH strength is viewed as a corrective rebound and it is too early to call for a larger rally in the ETH/USD pair.
Ether Price Corrective Rally Over?
Yesterday, we witnessed a decline in Ethereum price versus the US Dollar, as it moved below the $12.80-$13.00 support area and now the same area is acting as a resistance for a recovery in ETH/USD.
The ETH/USD pair during the past 24-hours managed to recover a few points from yesterday’s low, but it faced offers near $13.00 (as shown in the 24H chart). The price is currently moving down and it looks like it may weaken further during the upcoming sessions.
An initial support on the downside is at $12.40, which was a short-term resistance yesterday and may now act as a support. Any further losses might take Ether price back towards the last swing area of $12.00.
A higher time frame chart like 7-days of ETH/USD clearly shows that the price is still in a downtrend. The $13.00 resistance is marked with red lines, and there is also a bearish trend line with a yellow line.
I think as long as the price is below the $13.00 or the highlighted bearish trend line, it may head lower one more time. A test of the $12.00 level is very likely if the ETH bears remain in action for the upcoming sessions.
Important Resistance Levels
$12.80 and $13.00
Important Support Levels
$12.40 and $12.00
The RSI is also below the 50 level, which is a bearish sign.
The MACD is back in the bearish slope, calling for a downside move.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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