September 2, 2018 1:46 PM
Ether’s price recovered nicely against the US dollar whereas it remained in a range versus bitcoin. ETH/USD is approaching a key triangle break on the daily chart.
Ether gained bullish momentum and traded above the $295.00 resistance against the US dollar.
ETH/USD could soon break a crucial contracting triangle with resistance at $305.00 on the daily chart.
ETH/BTC is holding the important 0.0400BTC support with a few positive signs.
Technically, the daily chart indicators are likely to move into the bullish territory.
Ether Price Weekly Analysis
In the past couple of analyses, we discussed that ETH/USD is likely to trade higher toward the $300.00 level. The pair did gain traction recently, breaking the $290.00 and $295.00 resistances, and finally spiked above the $300.00 barrier.
On the other hand, there were bearish moves in ETH/BTC this past week. The pair declined to 0.0400BTC, which is currently acting as a strong support. In the short term, the pair might climb higher toward 0.0420BTC and 0.0440BTC as long as it is above 0.0400BTC.
Let’s start with the 2-hour chart of ETH/USD to understand the recent upward move from the $272.45 swing low. It seems like Ether buyers were successful in gaining strength above the $280.00 resistance. The price traded higher and broke the $290.00 and $295.00 resistance levels.
During the upward move, there was a break above a major connecting bearish trendline at $288.00. Finally, the price broke the $300.00 resistance and traded as high as $302.26.
At present, the price is correcting lower and tested the 23.6 percent Fibonacci retracement level of the recent move from the $272.45 low to $302.26 high. On the downside, there is a strong support formed near $285.00, a bullish trendline on the same chart, and the 50 percent Fibonacci retracement level of the recent move.
Moving up to the daily chart of ETH/USD, the pair is trading inside a crucial contracting triangle with resistance at $305.00. Should Ether’s price succeed in a daily close above the $300.00-305.00 resistance, there could be more upsides in the coming days.
The next significant resistance for buyers is near $340.00, $350.00, and a bearish trendline. On the flip side, a downside break below the triangle support at $270.00 will most likely put a lot of pressure on Ether in the medium term.
Weekly Resistance Levels
$305.00 and $340.00
Weekly Support Levels
$285.00 and $270.00
The RSI is slowly rising toward the 45-50 zone.
The MACD is about to move into the bullish zone.
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.
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