September 3, 2016 5:39 AM
Ether gained traction yesterday after a lousy Nonfarm payroll report in the US. Going forward, it looks like the ETH/USD pair may test $12.50 again.
Ether price after a minor correction yesterday against the US Dollar traded higher once again.
There was a perfect bounce from the $11.80 support area in the ETH/USD pair.
The pair is currently following an ascending channel pattern on the 30 min chart, which is acting as an upside move catalyst.
Technically, the 2-hours chart is signaling a constructive bullish pattern, calling for further upsides in Ether price.
Ether Price To Test $12.50?
Ether price after climbing as high as $12.85 yesterday versus the US Dollar started a correction. It traded lower and tested the $11.80 support where buyers appeared and prevented any further losses. Again the price is trading with a positive sentiment and back above $12.00.
My yesterday’s view of buying dips in ETH/USD worked and it looks like the pair is set for further upsides moving ahead. The 30 min chart clearly shows how the $11.80 support played an important role. Currently, there is an ascending channel pattern formed on the chart. It is acting as a catalyst for the recent upside move.
There is a possibility that Ether price may spike higher and retest the $12.50 level. And, if the ETH bulls remain in control, then even a test of yesterday’s high of $12.86 is likely.
No doubt, ETH is in an uptrend, and it is visible on the 2-hours chart as well. There is a constructive bullish pattern forming, which may spark further gains in the short term. The price may test the $12.50 level or even $12.80.
One key point is the fact that the recent economic release in the US (nonfarm payrolls report) failed to meet the market expectation, igniting a downside in the US Dollar. So, it increases the chances of further gains in Ether.
Important Resistance Levels
$12.50 and $12.80
Important Support Levels
$12.00 and $11.80
The RSI technical indicator is well above the 50 level, suggesting buyers are in control.
The MACD is currently in the bullish zone, which is a positive sign.
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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