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. 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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