Technically, the 2-hours chart suggests that the price is challenging a major support area at the moment.
Yesterday, I mentioned that there is a chance of Ether price heading towards $13.25 at least versus the US Dollar. It did trade higher, and posted an intraday high of $13.26 where sellers managed to defend any further upsides.
There was a sharp reaction around $13.25, and it looks like the ETH buyers failed miserably to retain momentum. A perfect top pattern was created on the 30-min chart of ETH/USD. During the downside drift, the price broke the 50% Fibonacci retracement level of the last wave from the $12.92 low to $13.26 high.
It represents a clear bearish signal, as can be seen from the last 4-5 30-min candles. The price fell sharply and traded close to the $13.00 handle. However, the Ether buyers are currently preventing the downside move.
When we look at the 2-hours chart of ETH/USD, there are a few support levels which holds the key in the short term. Currently, the price is trading at $13.05, which is an initial support. The next support on the downside is at $12.92, which was the last swing low as well.
So, we can say that the price at the moment is testing a major support zone, and there are chances of a recovery. If the price bounces from the current or a bit lower levels, it means that a range is formed. On the upside resistance is at $13.25, and on the downside support is at $13.00-$12.92. We may continue to witness ranging moves for the next couple of sessions.