September 17, 2016 1:48 AM
ETH/USD surged higher and posted good gains intraday. Yesterday’s idea of buying worked well, as Ether buyers gained control.
Ether price after a minor decline against the US Dollar spiked higher and broke the $12.10 resistance.
The ETH/USD pair traded as high as $12.59 and currently correcting lower.
My idea of buying ETH/USD was successful, as yesterday’s highlighted trend line on the 2-hours chart did well.
Technically, the 4-hours chart is now pointing a short-term top, which could produce a minor correction.
ETH/USD New High
Ether price after a test of the $11.90 support against the US dollar bounced sharply and traded higher. I highlighted a major bullish trend line on the 2-hours chart of the ETH/USD pair, and was looking for an upside move. The price did move higher and posted a new weekly high of $12.59.
The price after creating a new high found offers and currently correcting lower. If we look at the 30-min chart of ETH/USD, a clear break of a consolidation pattern is visible.
The $12.10 resistance was a major barrier, which was cleared during the recent upside move. The same level may now act as a support. It also represents the 61.8% Fib retracement level of the last wave from the $11.77 low to $12.59 high. So, it holds a lot of value and might act as a buy zone.
If we look at a higher time frame chart, then the 4-hours chart also signals a major break. There was a contracting triangle pattern, which was cleared during the recent upside move.
However, the top $12.59 candle is signaling a short-term bearish pattern. It looks like an inverted hammer or even a shooting star. It means there is a chance of a downside move. The price is already correcting and may trade towards the $12.10 level. In that situation, the mentioned level can act as a major hurdle for sellers and may provide support.
Important Resistance Levels
$12.45 and $12.60
Important Support Levels
$12.20 and $12.10
The RSI technical indicator is moving away from the overbought levels, signaling a correction.
The MACD is strongly placed in the bullish zone, but signaling loss of momentum.
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
Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Ether Price, Ether Price Chart and Ethereum Analysis News.
DisclaimerThe content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.