Is This ETH/USD Recovery Real?
|Ether price managed to spike higher against the US Dollar, as the $10.00 support proved its worth.|
|The ETH/USD broke a resistance trend line on the hourly chart to open the doors for a recovery.|
|The pair is currently facing resistance near $11.40-50, which may stop the current recovery.|
Technically, the 4-hours chart suggest that the indicators started turning north, which is a positive sign.
Ether Price Facing Crucial Resistance
Yesterday, Ether price started a recovery against both majors (US Dollar and Bitcoin). The ETH/USD pair spiked above $11.00, and the ETH/BTC pair managed to close above 0.0150BTC. The most significant point about the recent recovery was the fact that ETH/USD held the all-important $10.00 support.
The pair started a corrective rally, and cleared a couple of important hurdles on the way up. First, a bearish trend line on the hourly chart was broken. Second, the 50% Fibonacci retracement level of the last drop from the $11.58 high to $9.67 low was cleared.
Both these opened the doors for further upsides. As a result, there was an hourly close above the $11.00 handle. The ETH/USD pair is currently consolidating gains and may correct a few points lower. In that case, it might find buyers near a support trend line formed on the hourly chart.
When we look at a higher time frame chart to analyze the strength of the current recovery, then the 4-hours chart suggest that Ether price is gaining momentum. The last few candles were bullish, and shows that buyers succeeded in taking the price higher.
However, there is another critical point to consider. There is a major resistance zone at $11.40-50, as highlighted in the chart. It was a support earlier, and at the moment preventing gains. A clear break above the highlighted resistance might confirm a short-term reversal in ETH/USD.