It’s been a bullish start to the week for Ethereum. Following on from last week’s 18.9% rally, Ethereum is up by 12.9%, Sunday through Tuesday. After a bearish Sunday that saw Ethereum fall to a current week low $183.39, it’s been in the hands of the bulls all the way.
A 2.23% loss from Sunday was reversed with interest with Ethereum rallying to a Tuesday and current week high $219.49.
Following Saturday’s first visit to $200 levels since last November, a 4.4% gain on Monday and a 10.7% rally on Tuesday left Ethereum well above the $200 mark.
“The Rally” saw Ethereum break through and hold above the week’s first major resistance level at $213.92.
At the start of the week, Ethereum managed to steer well clear of the week’s first major support level at $164.2 in spite of Sunday’s reversal.
Following a 13.6% gain in April, it’s been a bullish month for Ethereum. The latest rally through to the end of Tuesday gave Ethereum a 35.6% gain for the current month.
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. Based on the current trend, Ethereum could be looking at $300 levels before the end of the current month.
At the time of writing, Ethereum was up by 0.42% to $218.36.
A move through to $225 levels would support a run at the second major resistance level at $235.32.
With the current sentiment reminiscent of late 2017, momentum could support a run at the 23.6% FIB of $257 later in the week.
Support from the broader market would be needed, however, for Ethereum to breakout from any move through to $230 levels.
A lack of support from the broader market could see Ethereum’s upside capped by the second major resistance level at $235.32.
Failure to move through to $225 levels could see Ethereum come under pressure. A lack of forward momentum would likely lead to some profit taking later in the week.
A fall through the first major resistance level at $213.92 would bring sub-$210 levels into play before any recovery.
Barring a broad-based crypto sell-off, however, Ethereum will likely steer well clear of the week’s first major support level at $164.2.
In the event of a reversal, holding above $185 levels will be considered key through the week.
Major Support Level: $164.2
Major Resistance Level: $213.92
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543