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, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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