Ethereum Analysis – Resistance Levels in Play – 07/08/19

Ethereum managed to hold onto gains from early in the week on Tuesday. Holding onto $220 levels will be key mid-week…
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Ethereum Price Resistance

It’s been a mixed first half of the week for Ethereum. Following last week’s 7.26% rally, Ethereum was up by just 0.29% Sunday through Tuesday.

Another bullish start to the week saw Ethereum strike a Tuesday high $239.45 before hitting reverse.

Following 2-consecutive days in the green that included a 4.55% rally on Monday, Ethereum slid by 3.05% on Tuesday to limit the upside for the current week.

The rally through to Tuesday’s late morning high saw Ethereum break through the first major resistance level at $232.3.

Ethereum steered clear of the week’s major support levels. A Sunday current week low $217.37 held well above the first major support level at $204.94.

Of greater significance in the current week, Ethereum continued to fall short of the 23.6% FIB of $257, following the July sell-off.

The extended bearish trend, formed at May 2018’s swing hi $828.97 remained firmly intact. Ethereum had continued to fall short of the 38.2% FIB Retracement Level of $367, before the slide back through the 23.6% FIB of $257.

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 0.08% to $226.0. A mixed start to the day on Wednesday saw Ethereum fall to an early low $224.04.

Steering well clear of the week’s first major support level at $204.49, Ethereum struck a morning high $226.39.

In spite of the recovery, Ethereum failed to break back through the first major resistance level at $232.3

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For the remainder of the week

Ethereum would need to hold onto $220 levels to support another run at the first major resistance level at $232.3.

Support from the broader market would be needed, however, for Ethereum to break out from the current week high $239.45.

In the event of a broad-based crypto rally, the second major resistance level at $242.46 would come into play.

We would expect Ethereum to continue to come up short of the 23.6% FIB of $257, however.

Failure to hold onto $220 levels could see Ethereum hit reverse. A fall through the current week low $117.37 to $114.6 levels would bring the first major support level at $204.49 into play.

Barring a broad-based crypto sell-off, Ethereum would likely steer clear of sub-$200 levels on the week.

In the event of a crypto meltdown, Ethereum could slide through last week’s low $197 before any recovery. We would expect Ethereum to steer the second major support level at $186.48, however.

With Ethereum up by 3.26% for the current month to the end of Tuesday, steering clear of sub-$200 levels will be key.

Looking at the Technical Indicators

Major Support Level: $204.49

Major Resistance Level: $232.3

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

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