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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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.
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