October 19, 2016 10:14 AM
ETH/USD after a clear upside break yesterday posted a mild correction, and now Ether price looks set for another ride higher.
Ether price yesterday’s upside move against the US Dollar and Bitcoin looks like real, as it remained in a bullish trend.
There was a minor correction in the ETH/USD pair, which found support near a bullish trend line on the hourly chart.
The pair is currently bullish on the 4-hours chart, signaling a possible move towards $13.00.
Technically, the hourly chart highlights a rejection near the $12.40 support zone.
Yesterday, I highlighted how Ether price managed to post healthy gains and a major break against the USD and BTC. There was a break above a monster resistance area of $12.10 in ETH/USD, which opened the doors for further gains.
The price after trading as high as $12.94 started a correction. During the correction, it tested the 38.2% Fibonacci retracement level of the last wave from the $11.80 low to $12.94 high where it found support. The stated Fib level also coincided with a bullish trend line on the hourly chart of ETH/USD.
The pair bounced from the highlighted bullish trend line, and during the recent upside move cleared a bearish trend line on the same chart. The stated break is a clear signal of rejection near the $12.40 support area, and it means the pair is now set for another upside move.
If the highlighted rejection pattern is valid, there is a chance of ETH/USD moving back towards the $12.80 level at least. And, if the Ether buyers step up the momentum, there is a possibility of the price heading towards the $13.00 handle.
The 4-hours chart also signals a major break above $12.10 yesterday. We can also notice that the last 4-hours candle is bullish, and pointing towards further upsides in the short term.
Important Resistance Levels
$12.80 and $13.00
Important Support Levels
$12.40 and $12.10
The RSI technical indicator just found support near the 50 level, which is matching with the highlighted rejection.
The MACD is shaping well in the bullish zone with no sign of a trend change.
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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