Ethereum Analysis – Resistance Levels in Play – 08/05/19

It’s been a mixed start to the week for Ethereum. A break back through to $168.5 would signal another run at $180 levels later in the week.
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Ethereum Price Resistance

It’s been a particularly choppy start to the week for Ethereum. A bearish start to the week saw Ethereum fall by 0.37% on Sunday to $161 levels before finding support.

Bullish through the day on Monday, Ethereum rallied through to a Tuesday current week high $180.69 before sliding back.

A 6.08% rally on Monday has been the highlight of the week thus far, with a 2.67% fall on Tuesday only partially reversing the early in the week rally.

The early in the week rally saw Ethereum break through the first major resistance level at $171.14 to hit $180 levels on Tuesday. Breaking through to $180 levels, the second major resistance level at $180.42 capped the upside early on in the week.

Support in the week came from talk of a possible approval of Ethereum futures. The support was short-lived, however.

Tuesday’s pullback from the current week high to sub-$170 levels saw Ethereum fall back through the week’s major resistance levels.

A start of a week low $157.28 saw Ethereum hold well above the first major support level at $150.69.

Following a 13.6% gain in April, it’s been a relatively positive start to the month for Ethereum. In spite of the pullback from $180 levels, Ethereum is up by 6.7% to the end of Tuesday.

The extended bearish trend, formed at last May’s swing hi $828.97, remained firmly intact, however. Ethereum continued to fall short of the 23.6% FIB Retracement Level of $257, following December’s swing lo $80.6.

For the bulls, a breakout from the 23.6% FIB of $257 to test the 38.2% FIB of $367 would be needed to form a near-term bullish trend.

At the time of writing, Ethereum was up 0.29% to $167.0.

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For the remainder of the week

A move back through to $168.5 levels would support another run through the first major resistance level at $171.14.

Support from the broader market would be needed, however, for Ethereum to breakout from current levels. Barring a broad-based crypto rally, Tuesday’s reversal from $180 levels will likely cap any upside for the week to sub-$180 levels.

In the event of a 2nd rally, Ethereum would likely break back through the second major resistance level at $180.42 to bring the current year high $187.62 into play before any pullback.

Failure to move through $168.5 could see Ethereum come under pressure later in the week. A pullback through to sub-$160 levels could bring the first major support level at $150.69 into play.

Barring a crypto meltdown, however, Ethereum will likely steer well clear of sub-$150 levels and last week’s low $148.81.

Looking at the Technical Indicators

 

Major Support Level: $150.69

Major Resistance Level: $171.14

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

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