ETH/USD started a recovery, but I don’t think the pair has concluded its losses yet and the possibility of a trend change is minimal.
Ether price traded below the $12.00 support area against the US Dollar, but later managed to find support.
A bearish trend line break was noted on the last 7-days chart of the ETH/USD pair, which is a short-term recovery sign.
The all-important $12.80-$13.00 resistance area may come into play once again on the upside.
Looking at the 7-days and 14-days chart of ETH/USD, it is quite evident that there are many crucial resistances on the way up for the pair.
Ether Price Recovery
Yesterday, I mentioned that there is a risk of Ether price moving down towards the $11.80 support area against the US Dollar. It did move lower, and traded as low as $11.81 where it found buyers. The stated level was highlighted as a major support area, and it proved its worth.
The ETH/USD pair started recovery, and even broke a bearish trend line on the 7-days chart to clear the way for a short-term rebound. There are two main obstacles for ether price recovery on the upside. First, the all-important $12.80-$13.00 resistance area (red line), and the second one is the upper bearish trend line.
Out of the two obstacles, the $12.80-$13.00 resistance area holds the key for more gains. It acted as a monster barrier earlier, and may continue to act as a sell zone.
The significance of the mentioned resistance area is also visible on the 14-days charts of ETH/USD. Going forwards, there is a chance of a move towards the highlighted resistance area, but it won’t be easy for the ETH bulls to break it.
One may even consider selling in the short term as long as the price is below the $12.80-$13.00 resistance area.
Important Resistance Levels
$12.80 and $13.00
Important Support Levels
$12.00 and $11.80
The RSI is below the 50 level, which is a bearish sign.
The MACD is again in the bearish zone, suggesting the recent move may be a part of correction.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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