- Ethereum has rebounded at the .5 Fibonacci Retracement level priced at $119.
- The market is now attempting to climb and hold up above the $140 handle.
- Support moving forward – $138.29, $127.85, $119.39, $110.94, $100, $98.91, $91.74, $84.03,
- Resistance moving forward – $140, $150, $155.12, $171.94, $175.19, $185.44, $197.73.
Ethereum has seen a well received +15.47% price surge over the past 24 hours of trading. The cryptocurrency is now exchanging hands at a price around $140, at the time of writing, after seeing a further +22% price rise over the previous 7 days of trading.
Where is Ethereum ranked?
Ethereum is now still ranked in 3rd position as it presently retains a $14.18 billion market cap valuation. The 41 month old blockchain project has seen a sharp decline totalling -40% over the past 90 trading days as it now trades at a value that is 90% lower then the all time high price.
Ethereum Price Analysis
Long Term Ethereum Analysis
ETH/USD – LONG TIME – DAILY CHART
Since our previous Ethereum analysis, the market has collapsed pretty significantly. Price action was trading within the confines of a medium term symmetrical triangle pattern during September 2018 to mid-November 2018.
However, as the industry wide bloodbath began to flow during mid-November 2018, we can see that Ethereum plummeted significantly. The market dropped from a high above $220 and continued to fall until reaching support at a medium termed downside 1.414 Fibonacci Extension level (drawn in blue) priced at $84.03.
As price action reached this area of support, we can see that ETH/USD rebounded and began to rise once again.
Let us take a closer look at price action from a closer time perspective and continue to provide some potential areas of support and resistance moving forward.
Short Term Ethereum Analysis
ETH/USD – SHORT TERM – 4HR CHART
What’s been going on?
Analysing the market from the 4HR perspective above, we can see that after ETH/USD rebounded from the support at $84.03 the market went on to rally aggressively.
The market rebound saw Ethereum rise back above the $100 handle pretty quickly. The market continued to rise over the following few days until reaching resistance at a bearish .5 Fibonacci Retracement level (drawn in red) priced at $155.12 before price action rolled over and retraced once again.
This bearish Fibonacci Retracement is measured from the high seen during November 2018 to the low placed during December 2018.
Where are we now?
After the market rolled over, it began to fall and continued to decline until support was met at the short term .5 Fibonacci Retracement level (drawn in green) priced at $119.39. As price action reached this area of support, Ethereum began to rise once again.
The ETH/USD market is now trading at further higher support provided by the bearish .382 Fibonacci Retracement level (drawn in red) priced at $138.29.
Where can we go from here?
If the bulls can hold above the support at $138 and begin to push the market higher we can expect immediate resistance toward the upside to be located at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $155.12. If they can continue to climb further higher then more resistance above can be expected at the bearish .618 Fibonacci Retracement level (drawn in red) priced at $171.94.
In the case that the bullish surge continues to drive price action even further higher we can then expect more resistance toward the upside to be located at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in orange) priced at $175.19 and $185.44, respectively.
What if the bears regain control?
If the bears regain control of the market momentum and push price action below the support at $138 we can expect further support toward the downside to be located at the short term .382 and .5 Fibonacci Retracement levels (drawn in green) priced at $127.85 and $119.39, respectively.
If the market continues below $119 then more support can then be expected at the short term .618 and .786 Fibonacci Retracement levels (drawn in green) priced at $110.94 and $98.91, respectively.
What are the indicators showing?
The RSI on the 4HR time frame is trading above the 50 handle to indicate that the bulls are in possession of the market momentum in the short term. So long as the RSI can remain above the 50 handle during the retrace we can expect Ethereum to rebound and continue even further higher.