September 23, 2016 10:58 AM
ETH/USD looks like completed a correction wave at $12.70, and currently preparing for an upside move since Ether buyers are back.
Ether price after trading as low as $12.70 against the US Dollar found support.
There is likely a double bottom pattern forming on the hourly chart of ETH/USD, which may lift the pair going forward.
The pair also broke a minor bearish trend line on the same chart, signaling an upside move.
Technically, the 4-hours chart suggests that the pair is finding support near a major technical level with indicators turning north.
ETH/USD Trend Change
Ether was seen under pressure against both the US Dollar and Bitcoin, as yesterday’s highlighted correction pattern extended too far. The ETH/USD pair traded as low as $12.70 and ETH/BTC formed a low of 0.0205BTC before both pairs found support and started moving higher.
The ETH/USD pair downside found buyers around the last swing low (as highlighted on the hourly chart with green circles). This means there is a chance that the pair has formed a double bottom pattern. The pair is already recovering, and moved above the 23.6% Fib retracement level of the last drop from the $14.31 high to $12.70 low.
Furthermore, there was a bearish trend line formed on the hourly chart of ETH/USD, which was broken to open the doors for an upside move. The pair is currently struggling to clear the $13.50 resistance area, but if the recent break is true, there is a possibility of a move towards $14.00.
When we look at the 4-hours chart, it is clear that the recent bounce was from a perfect technical support level. The same level was a resistance zone earlier, and now prevented a downside move.
The only concern is the loss of momentum. The Ether bulls need to stay in action, else it may give sellers a chance of to push the price down once again.
Important Resistance Levels
$13.50 and $13.80
Important Support Levels
$13.20 and $13.00
The RSI technical indicator is back above the 50 level, calling for further gains.
The MACD is attempting to move into the bullish zone, which is a good 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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