September 13, 2016 11:18 AM
Ether price reverted the last week losses versus the US Dollar, and there is a chance of an upside continuation in ETH/USD.
Ether price bounced yesterday against the US Dollar, as the trend line support (highlighted yesterday) played well.
The ETH/USD pair broke a contracting triangle pattern on the hourly chart to open the doors for more upsides.
It looks like Ether sellers are losing the grip, which could produce more upsides in time.
Technically, according to the 4 hours chart, the risk is towards the upside due to back to back bullish candles.
Ether Price Rise
Yesterday, I stated that Ether price likely completed a correction versus the US Dollar and may rise in the short term. The ETH/USD pair did manage to gain strength and found support on the downside for an upside move.
Yesterday’s highlighted major support trend line on the hourly chart of ETH/USD acted as a perfect buy zone and pushed the pair higher. The upside move was strong, as during the drift the Ether bulls also managed to break a contracting triangle pattern on the same chart.
Furthermore, there was a close above the $11.80 resistance, as the price traded to a high of $12.16. It is currently facing minor offers, which presents a risk of a minor correction. In that case, the 38.2% Fib retracement level of the last wave from the $11.49 low to $12.16 high may act as a support at $11.80.
Ether rose strongly to a high of $12.16 to create a new weekly high. This suggests that the price is clearly in an uptrend. According to the 4 hours chart, the ETH/USD pair is at a risk of more gains since the last two candles are pretty bullish. It is a signal that even if there is a minor correction, the bulls remain in control.
On the upside, the next level of interest could be at $12.40. It is a major hurdle and sellers may attempt to prevent further upsides.
Important Resistance Levels
$12.15 and $12.40
Important Support Levels
$11.80 and $11.60
The RSI technical indicator is well above 50 level, which is a positive signal.
The MACD is strongly bullish, calling for $12.16 break.
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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