Ethereum Analysis – Resistance Levels in Play – 10/07/19

It’s a bullish first half of the week. Support mid-week could deliver $330 levels by the weekend…
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Ethereum Price Resistance

It’s been a bullish first half of the week for Ethereum. Reversing most of last week’s 9.3% slide, Ethereum was up by 7.07%, Sunday through Tuesday.

A particularly bullish start to the week saw Ethereum jump by 6.53% on Sunday to set the tone early on. Following on from Sunday’s rally, Ethereum gained 2.26% on Monday before hitting red on Tuesday.

The Tuesday loss came in spite of Ethereum rising to a current week high $318.6 in the early hours of the day.

A broad-based crypto sell-off weighed on the day, with Ethereum ending the day down by 1.7% at $307.92.

The moves through to Tuesday’s current week high saw Ethereum break through the first major resistance level at $317.31 before pulling back to sub-$310 levels.

While falling short of the 38.2% FIB of $367, Ethereum steered well clear of the 23.6% FIB of $257. Ethereum also steered clear of the first major support level at $264.12 at the start of the week.

The extended bearish trend, formed at May 2018’s swing hi $828.97 remained firmly intact, however. Ethereum continued to fall short of the 38.2% FIB Retracement Level of $367, following December’s swing lo $80.6.

For the bulls, a breakout from the 38.2% FIB of $367 would be needed to form a near-term bullish trend.

At the time of writing, Ethereum was up by 1.48% to $312.47.

For the remainder of the week

Ethereum would need to steer clear of sub-$310 levels through the middle of the week to support further gains.

A move through to $315 levels would bring the current week high $318.6 into play. Ethereum would need the support of the broader market, however, to break through the first major resistance level at $317.31.

In the event of a broad-based crypto rally, Ethereum could move through last week’s high $323.61 to approach $330 levels.

Barring a crypto rally going into the weekend, however, the first major resistance level and last week’s high $323.61 would likely cap any upside in the event of a bounce back.

We would expect Ethereum to fall well short of the second major resistance level at $347.06 in the week.

Failure to steer clear of sub-$310 levels would likely see Ethereum slide back to sub-$300 levels before any recovery.

In the event of a broad-based crypto reversal, a fall through to sub-$294 levels would bring $280 levels into play before any recovery.

Barring a crypto meltdown, however, Ethereum should steer well clear of the first major support level at $264.12.

Looking at the Technical Indicators

 

Major Support Level: $264.12

Major Resistance Level: $317.31

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

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