September 1, 2016 12:20 PM
Ether price broke all important hurdles and overcame selling pressure versus the US Dollar as ETH/USD registered a new weekly high.
Ether price managed to break yesterday’s highlighted resistance area and moved higher versus the US Dollar.
The ETH/USD pair surpassed a monster range resistance area of $11.50 and traded above $12.00.
The current market sentiment is now pretty bullish and pointing more gains in the near term.
Technically, the 4-hours chart indicators are pointing north and signaling strength in ETH.
ETH/USD Upside Surge
Ether price after trading in a range for some time against the US Dollar finally broke all shackles and traded higher. I kept saying in my previous analysis that it’s only a matter of time before the Ether may gain pace for further gains. Finally, it did trade higher.
The ETH/USD pair traded positively and broke a couple of key resistance levels like $11.40 and $11.50. The ETH bulls made a lot of attempts to break the stated range resistance earlier, but failed. However, they did manage to finally get the price above it in a convincing way.
The pair is currently trading near the last swing high of $12.80, which is acting as a hurdle for more gains. There is a minor correction underway, which is finding support near a bullish trend line on the hourly chart. It holds the key for further upsides in ETH/USD.
A break below it may call for an extension of the current correction phase. In that situation, a test of the 50% Fib retracement level of the last wave from the $10.60 low to $12.80 is possible.
When we have a look at the 4-hours chart of ETH/USD, then it is quite clear that the recent break above $11.50 was crucial. The same level may now act as a support if the price corrects from the current levels. I think buying dips in ETH may be considered as long as the price is trading positively and above $11.80.
Important Resistance Levels
$12.80 and $13.00
Important Support Levels
$12.10 and $11.80
The RSI technical indicator is around the overbought levels, which may ignite a minor correction.
The MACD is strongly bullish, suggesting more gains.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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