September 14, 2016 11:14 AM
Ether price is currently correcting lower against the US Dollar, but ETH/USD may soon find support on the downside.
Ether price slowly and steadily moved down versus the US Dollar and currently testing a support area of $11.90.
If the ETH/USD pair manages to hold the mentioned support, there is a chance of a bounce back.
The Ether buyers need to break a bearish trend line formed on the 30-min chart for an upside move.
Fundamentally, there is no major economic news in the US, and the Ethereum arena is also quite today.
Ether Price Correction
Ether price started a short-term correction yesterday versus the US Dollar after trading as high as $12.16. The ETH/USD pair already moved below the 23.6% Fib retracement level of the last wave from the $11.49 low to $12.16 high.
The price tested a short-term support area at $11.90. It can be seen from the 30-min chart, the stated level acted as a support and resistance earlier. So, it may act as a buy area for the pair in the short term. It is also just above the 50% Fib retracement level of the last wave from the $11.49 low to $12.16 high.
In short, the $11.90 support holds the key for the next move in ETH/USD. If there is a break below it, there could be an extension of the current correction. On the other hand, if there is a bounce, then an initial resistance on the upside is around a bearish trend line on the same chart.
The last two candles are positive, but the trend line must be cleared for the Ether bulls to back in action. When we have a look at the 2-hours chart of ETH/USD, there is a monster bullish trend line waiting on the downside to act as a support.
So, even if the price moves down it remains supported. In my view, buying dips may be considered as long as the trend line support is intact.
Important Resistance Levels
$12.05 and $12.16
Important Support Levels
$11.90 and $11.75
The RSI technical indicator is still above the 50 level, which is a bullish sign.
The MACD is slightly in the bearish zone, but there is no momentum.
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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