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.
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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.
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