It’s been a particularly bullish start to the week for Ethereum. Following a 6.79% gain in the week ending 18th February, Ethereum surged by 9.29% on Monday before hitting choppier waters on Tuesday.
The gains came off the back of a 16.95% rally in the week ending 11th February that has ultimately created some distance from mid-December’s swing lo $80.60.
A trend-bucking 1.31% fall on Tuesday did little to dent the momentum seen through February. Ethereum was one of a number of the top 10 cryptos, by market cap, to see red on the day. For the current month, Ethereum is now up 34.88% and by 77% from December’s swing lo.
The early in the week rally saw Ethereum strike a week high $149.47 on Tuesday before easing back to $142 levels. The rally saw Ethereum break through the week’s first major resistance level at $138.65 and second major resistance level at $144.97.
A start of a week low $131.05 saw Ethereum steer well clear of the week’s first major resistance level at $121.51 as the weekend rally continued.
Holding onto $140 levels through Tuesday was key. Ethereum will need to avoid pullback through to sub-$138 levels ahead of the weekend.
For the bulls, a run of 4 consecutive days in the green came to an end. The end of the run could spell trouble as the broader market saw green on the day.
In spite of the solid gains since a mid-December swing l0 $80.60, the extended bearish trend remained intact. Ethereum continued to fall well short of the 23.6% FIB Retracement Level of $257 and more importantly, the 38.2% FIB of $367.
At the time of writing, Ethereum was up by 0.27% to $143.07. Following Tuesday’s trend-bucking fall, support kicked in at the start of the day. Ethereum rose from a morning low $142.50 to a morning high $143.50 before easing back.
The week’s major support remained untested early. For the bulls, Ethereum continued to hold above the first major resistance level at $138.65.
A hold onto $140 levels through the middle of the week would support another run at the first major resistance level at $144.97. A break back through to $145 levels would bring the current week’s high $149.47 into play before any pullback.
For Ethereum to move through to $150 levels, considerable support from the broader market would be needed going into the weekend. A late Tuesday reversal across the broader market could test the latest rally mid-week.
Failure to hold onto $140 levels mid-week could see Ethereum give up some of the current week’s gains. A pullback through Tuesday’s low $142.46 could see Ethereum fall through to sub-$140 levels before any recovery.
We would expect some profit taking to test investor resolve mid-week. However, Ethereum would likely steer well clear of sub-$130 levels and the week’s first major support level at $121.51, in the event of a sell-off.
Major Support Level: $121.51
Major Resistance Level: $138.65
23.6% Fib Retracement Level: $257
38% Fib Retracement Level: $367
62% Fib Retracement Level: $543