September 28, 2016 10:50 AM
Ether price registered a new weekly high versus the USD and BTC, as ETH buyers gained control. Going forward, there are chances of additional upsides.
Ether price continued to gain momentum against the US Dollar and Bitcoin to post intraday highs.
There was a crucial break sighted in yesterday’s post in the ETH/USD pair, which paved the way for more upsides.
The pair traded as high as $13.36, and currently correcting lower.
Technically, the 2-hours chart is highlighting a major break, and the next resistance area of $13.50.
Yesterday, I highlighted a shift in the trading and technical outlook to positive for Ether. It was true, as both ETH/USD and ETH/BTC registered gains during the past 12 hours and even formed a new weekly high. Let us see how Ether price may perform going forward.
Once the price managed to close above the $13.10 resistance, there was a sharp spike towards $13.40. There was a new high of $13.36 where sellers stepped in and protected further gains. The 30-min chart clearly suggests that the recent upside move was crucial.
Currently, the ETH/USD pair is correcting lower. It is attempting to close below the 23.6% Fibonacci retracement level of the last wave from the $12.83 low to $13.36. If the price corrects further, the broken resistance of $13.10 may now act as a support.
Furthermore, there is a bullish trend line formed on the same chart. So, we can say that there is a short-term important support formed near $13.10-05. As long as the price is above it, there is a chance of further upsides going forward.
Another reason why I think the recent break was crucial is because of the 2-hours chart of ETH/USD. Yesterday, I highlighted a trend line break, which recently helped the Ether buyers in gaining strength. A clear bullish break is visible in the H2 chart. The next stop for ETH/USD on the upside could be $13.50, representing a resistance level.
Important Resistance Levels
$13.35 and $13.50
Important Support Levels
$13.10 and $13.00
The RSI technical indicator is now attempting to break the neutral level, which may ignite another rally.
The MACD is now in the bullish zone, and highlighting a 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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