Technically, the 2-hours chart is showing positive signs, but we need more for a change in the trend confirmation.
Ether Price Recovery Started?
The Ether sellers had another good day in the office, as the price declined towards $11.60 against the US Dollar, and 0.0190BTC versus Bitcoin. Later, the buyers fought and attempted to protect more losses in the near term.
It looks like their efforts worked, as the ETH/USD pair started a short-term recovery. The 30-min chart of the pair highlights a recovery pattern with a break of a tiny bearish trend line. However, the upside found resistance near $12.10, which according to me is a major hurdle in a recovery.
The price is currently moving back down. If it continues to move down, there can be bids near the 50% Fibonacci retracement level of the last leg from the $11.64 low to $12.08 high. If it holds, the price may once again move higher. The technical pattern on the 30-min chart suggests a 5-wave structure, which may end up pushing the price above $12.08.
The 2-hours chart of ETH/USD is pointing a very important break. There was a bearish trend line, which is cleared by the bulls during the recent upside.
If the highlighted break on the chart is true, it is a sign of the start of a recovery in ETH/USD. In the mentioned scenario, the price may head towards the 50% Fibonacci retracement level of the last drop from the $13.51 high to $11.64 low, which is at $12.50.