Technically, the hourly chart is highlighting a short-term topping pattern around $14.30 level.
ETH/USD Reaction Zone
No doubt, the Ether continued to gain traction and bids during the past 24 hours against the US dollar and the Bitcoin. There was a new monthly high in ETH/USD at $14.31 and 0.0238BTC in ETH/BTC. The ETH/USD pair traded with a positive bias and posted good gains.
Yesterday, I highlighted a pattern break, which opened the doors for further upsides. The price did clear the $14.00 handle to post a high of $14.31. However, the upside could not last long. In my yesterday’s post I stated that there is a major reaction zone on the 4-hours chart at $14.00.
The price started struggling as soon as there was a move above the stated level. It moved down and now trading below $14.00. There is a bullish trend line formed on the hourly chart of the ETH/USD pair, which may act as a support if the price declines further.
The 38.2% Fibonacci retracement level of the last wave from the $12.34 low to $14.31 high is also meeting around the trend line. So, there is a chance of buyers appearing and providing support. The 4-hours chart of ETH/USD also points the importance of the same support area.
There was an ascending channel pattern, which was broken during the recent upside. Now, it may act as a support at $13.40-20. The last H4 candle also signals a short-term top, and calling for a correction wave.