Aayush Jindal from ETHNews produced the following eye-catching analysis of the ETH/USD pair (Ethereum/USD)
Technically, the 12-hour chart indicators are moving nicely in the bullish territory.
Ether Price rally is here to stay
This past week was excellent for Ether, as the price moved to a fresh 2017 high against the US Dollar and Bitcoin. There was a major breakout in ETH/USD, signaling start of a new uptrend.
We kept monitoring a monster resistance area near $50.00-52.00, and discussed its importance on many occasions. The pair struggled to break it multiple times, but later during this past week, managed to surpass the $52.00 resistance.
This surge can be considered as a major breakout for ETH/USD. When looking at the charts, we can see the pair rocketed higher and registered weekly gains of more than 40%.
During the upside move, the price broke the $60.00 and $65.00 levels, and even traded a few points above $70.00 to establish a new all-time high at $71.61.
At the moment the price is consolidating gains, with a chance of a minor correction in the short term. Looking at the 2-hour chart of ETH/USD, it looks like the pair has formed a minor top.
It broke a connecting bullish trend line at $70.50, opening the doors for a correction. It can move towards the 23.6% Fibonacci retracement level of the last wave from the $53.00 low to $71.61 high where it is likely to find support.
Any downturn should be limited considering the current market sentiment. Many are asking whether ETH/USD can test $100.00 or not in the near term?
It won’t be easy for Ether to register such record gains in such a short time. However, I won’t deny that the current market conditions are extremely bullish, and we may see continued gains in ETH/USD.
There is a chance of it trading close to $80.00-85.00 before correcting towards $60.00-65.00, then attempting a move towards $100.00 in late 2017.
- Important Resistance Levels
- $71.50 and $74.00
- Important Support Levels
- $68.00 and $66.00
- 12-hour RSI
- The RSI is heading further towards the overbought levels.
- 12-hour MACD
- The MACD is moving nicely in the bullish zone.