Ether Price Just Made A Short-Term Bottom?
|Ether price after a nasty decline from $14.00 to $11.50 against the US Dollar found support and traded higher.|
|The ETH/USD pair bounced and traded back above the $12.00 handle.|
|On the upside, there is a bearish trend line formed on the hourly chart of ETH/USD, which can be seen as a resistance at $13.20.|
Technically, there was a lot of noise during the past couple of sessions. In my view, short-term traders may find it difficult to trade ETH/USD this week.
ETH/USD Sighting a Recovery
Ether price weakened a lot during the past 24 hours against the US Dollar and posted a new weekly low of $11.48. Later, the Ether bulls appeared and managed to push the price higher from the lows.
A recovery has already started as the price broke the 38.2% Fibonacci retracement level of the last drop from the $14.00 high to $11.45 low, and currently trading around the 50% Fib level of the same leg. On the upside, the most important resistance in the way for recovery is around a bearish trend line formed on the hourly chart of ETH/USD.
The highlighted trend line is currently aligned at $13.20, which may act as a barrier for further gains. If there is a break above it, then there might be a change in trend from bearish to bullish.
The 4-hours chart of the ETH/USD pair suggests that the recent bounce was technically correct. There is a bullish trend line formed, which acted as a support area and preventing further losses.
There is a hammer pattern forming around the trend line as well, which is a strong bullish signal. If the pattern is correct and plays well, then it can be a catalyst bulls are searching to take the ETH/USD pair higher.