February 14, 2018 4:44 PM
Ether accelerated higher against the US dollar but is facing an extended correction versus bitcoin. ETH/USD is showing a lot of bullish signs with supports at $870.00 and $840.00.
Ether succeeded in gaining strength and moved above the $870.00 resistance against the US dollar.
There is a key bullish trendline forming with support at $840.00 on the 4-hour chart of ETH/USD.
ETH/BTC declined further and is currently approaching the 0.0950BTC support.
Technically, the hourly chart indicators are correcting lower from the overbought levels.
ETH/USD Could Accelerate Further
There was a positive price structure formed in ETH/USD around the $825.00 swing low. The pair started a nice upward move and succeeded in breaking a crucial resistance at $870.00.
On the other hand, ETH/BTC continues to correct lower and is currently approaching the 0.0950BTC support; the previous support at 0.1000BTC is now a resistance.
Looking at the hourly chart of ETH/USD, there was a sharp rise in bullish sentiment from the $825.00 low. The pair broke the 61.8 percent Fibonacci retracement level of the last decline from the $875.70 high to $824.17 low. It opened the door for more gains and Ether’s price moved above the $870.00 resistance and the $875.70 high. A new weekly high was formed at $898.69, from where the price started a downward correction.
If the price declines, an initial support awaits around $870.00-875.00 (resistance turned support). Below $870.00, there is a bullish trendline forming with support at $855.00. Should buyers succeed in pushing the price above $900.00, ETH/USD could accelerate further toward $940.00 and $960.00.
Moving up to the 4-hour chart of ETH/USD, the last four candles were green. Moreover, there is a key bullish trendline forming with support at $840.00 on the same chart.
Overall, the current price action is bullish and if Ether succeeds in a close above $900.00, there could be further gains in the near term.
Important Resistance Levels
$900.00 and $940.00
Important Support Levels
$870.00 and $855.00
The RSI is rising higher toward the 65 and 70 levels.
The MACD is gaining pace in the bullish zone.
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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