The ETH/USD pair tumbled yesterday, but later recovered. Currently, there are signs of a strong rejection around the $12.00-$11.80 support levels.
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.
Important Resistance Levels
$13.20 and $13.50
Important Support Levels
$12.60 and $12.20
The RSI technical indicator is now above the 50 level, which is a positive sign.
The MACD has moved back into the bullish slope, calling for more gains.
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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