31-08-2016
06:02 am
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Ethereum Price Technical Analysis – Perfect Bullish Break?




Ethereum price spiked higher to trade above $5.50. There was a classic bullish break noted on the hourly chart calling for more upside moves. Intraday Support Level can be $5.40. Intraday Resistance Level may be $5.90.
Ethereum Price Technical Analysis
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Key Highlights

  • Ethereum price climbed higher and managed to break a major resistance area to open the doors for more gains.
  • The price broke a bearish trend line formed on the hourly chart (data feed via Kraken), which may now act as a support if the price corrects lower.
  • On the upside, the all-important $6.00 may play a crucial role and buyers might find it hard to break it.

Ethereum price spiked higher to trade above $5.50. There was a classic bullish break noted on the hourly chart calling for more upside moves.

Ethereum Price – Buy Dips?

Ethereum price looks like recovered well after forming a base near the $3.30-00 support area. Buyers gained control in taking the price higher in the short term. Yesterday, I highlighted a bearish trend line on the hourly chart (data feed via Kraken), which was supposed to play a crucial role for both buyers and sellers. It looks like buyers had an upper hand in taking the price above the highlighted trend line and resistance area. There was a nice upside rally after the break, as the price traded as high as $5.90.

It looks like buyers are finding offers near the stated level, as the all-important $6.00 handle may be playing in the mind of investors. There is a chance of a correction moving ahead that may find initial bids near the 23.6% Fib retracement level of the last wave from the $4.00 low to $5.90 high. The next support area on the downside may be around the $5.00 handle.

Ethereum Price Technical Analysis

However, the most important support area may be around the broken trend line, which might act as a barrier for sellers moving ahead. The best part is that the 100 simple moving average (H1 chart, Kraken) is also positioned near it.

Hourly MACD – The MACD is in the bullish zone, calling for more gains.

Hourly RSI – The RSI is also above the 50 level, which is a bullish sign.

Intraday Support Level – $5.40

Intraday Resistance Level – $5.90

 

Charts courtesy of Kraken via Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

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 markets.

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