Technically, the hourly chart highlights a rejection near the $12.40 support zone.
Yesterday, I highlighted how Ether price managed to post healthy gains and a major break against the USD and BTC. There was a break above a monster resistance area of $12.10 in ETH/USD, which opened the doors for further gains.
The price after trading as high as $12.94 started a correction. During the correction, it tested the 38.2% Fibonacci retracement level of the last wave from the $11.80 low to $12.94 high where it found support. The stated Fib level also coincided with a bullish trend line on the hourly chart of ETH/USD.
The pair bounced from the highlighted bullish trend line, and during the recent upside move cleared a bearish trend line on the same chart. The stated break is a clear signal of rejection near the $12.40 support area, and it means the pair is now set for another upside move.
If the highlighted rejection pattern is valid, there is a chance of ETH/USD moving back towards the $12.80 level at least. And, if the Ether buyers step up the momentum, there is a possibility of the price heading towards the $13.00 handle.
The 4-hours chart also signals a major break above $12.10 yesterday. We can also notice that the last 4-hours candle is bullish, and pointing towards further upsides in the short term.