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. 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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