It’s been a relatively choppy start to the week for Ethereum. A 16.4% slide on Sunday left Ethereum with a 0.43% loss for the week ending 24th February. Partially recovering the Sunday tumble, Ethereum managed a 4.46% gain on Monday before hitting reverse.
An early in the week high $141.09 saw Ethereum fall well short of the week’s first major resistance level at $154.59 before pulling back. The pullback saw Ethereum slide to a current week low $130.6 before finding support. Ethereum held well above the week’s first major support level at $119.97 in the early part of the week.
Attempts at a return to $140 levels have led to reversals, suggesting that $140 is the near-term line in the sand for the bulls.
In spite of Sunday’s reversal and a mixed start to the week, Ethereum is up by 2.96% for the current week. For the bulls, Ethereum continues to sit well above mid-December’s swing lo $80.60.
Falling back through to sub-$140 levels this week will leave Ethereum under pressure. For the bears, $120 will be the next target. Since December’s swing low $80.6, Ethereum has jumped by 68%. There are plenty of reasons for speculative investors to lock in the gains should sentiment across the broader market deteriorate further.
In spite of the solid gains since a mid-December swing lo $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 down by 0.38% to $135.15. An early reversal saw Ethereum fall to a morning low $134.1 before finding support.
Steering clear of the current week’s low $130.6 was key through the early part of the morning.
A move back through to $142.80 levels would signal an Ethereum rebound from Sunday’s sell-off. Breaking through to $143 levels would bring $150 levels and the week’s first major resistance level at $154.69 into play.
Ethereum would need support from the broader market, however, to break out from $140. A broad-based crypto rally would be needed to bring $150 levels back into play. We would expect Ethereum to come up well short of last week’s high $165.62 in the event of a crypto rebound.
Failure to move back through to $140 levels could see Ethereum give up the current week’s gains. A pullback through the current week low $130.6 would bring $125 levels into play before any recovery.
Barring a continued reversal through the middle of the week, we would expect Ethereum to steer clear of the week’s first major support level at $119.97. Holding onto $130 levels through to the weekend would be key to avoiding the week’s major support levels.
Major Support Level: $119.97
Major Resistance Level: $154.59
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543