The market’s bulls strengthened their grip over Ethereum’s market during the past 48 hours, managing to push the price of ether above a significantly strong resistance level around $713.24 during Wednesday’s trading sessions. Ethereum witnessed a 10% surge during less than 48 hours, scoring a day high of $770, at the time of writing of this analysis. As we expected during our previous ethereum price analysis, the 61.8% Fib. retracement ($713.24) was breached when retested on Wednesday, paving the way for the market’s bulls all the way up to the next resistance level, which lies around $849.08 (50% Fib. retracement).

Heading towards the 50% Fib. retracement on the 4 hour ETHUSD chart:

Via examining  Bitfinex’s 4 hour ETHUSD chart, while plotting the 200 period SMA (red curve), the 50 period SMA (blue curve), and the MACD indicator, as illustrated by the below chart, we can conclude the following (Note: we will keep the Fibonacci retracements we extended during our previous analysis):

  • An upwards trendline has been marking the bullish wave that we have been witnessing since April 7th (bluish trendline on the above chart). Ethereum price plummeted for around 16-18 hours below this upwards trendline, before soaring to breach the resistance around $713.24 (61.8% Fib. retracement) on Wednesday. The rate of rise of the price of ether increased significantly after soaring above this crucial resistance level. Now, the next resistance level lies near $849.08, which corresponds to the 50% Fib. retracement.

 

  • We are likely to see ethereum price continue rising towards $849.08. This is evidenced by two important bullish signals:

1- A “bullish crossover” can now be observed as the 50 period SMA has successfully crossed above the 200 period SMA.

2- The MACD indicator exhibits several bullish signs. The blue MACD line is now above the red signal line and both are sloping in an upwards direction. The MACD is also now in the positive territory.

  • Repeated bouts of price soars followed by brief bearish attempts. This is how the price of ether has been behaving during the past 3-4 weeks. Almost always, the bearish attempts have been resisted by the rising support level represented by the upwards trendline (blue trendline on the above chart), except right before the $713.24 resistance level was breached on Wednesday. Accordingly, we can see a downwards price correction attempt become evident, before ethereum price continues on rising to attempt testing the resistance around $849.08. The downwards price correction attempt can pull the price of ether down near $713.24, which will act as a support level (resistance turns into support).

Green Ichimoku Cloud on the 1 day ETHUSD chart:

Let’s study Bitfinex’s 1 day ETHUSD chart. We will plot the Williams Alligator indicator and the Ichimoku Cloud, while keeping our Fibonacci retracements as shown on the below chart. We can conclude the following:

  •  The Ichimoku Cloud has turned into the green color. Ethereum price is currently way above the level of the Base Line (red line), and above the cloud as well. The Conversion Line (blue line) has crossed above the Base Line (red line). These are 4 bullish signals conveyed via the Ichimoku Cloud indicator.

 

  • The Williams Alligator’s SMAs are exhibiting a bullish alignment, with the teeth (red SMA) in the middle of the green SMA (lips) from above and the blue SMA (jaws) from below. So, the alligator’s mouth is “open and eating”, so we can expect ethereum price to continue rising towards the next significant resistance level which lies around $849.08, or the 50% Fib. retracement.

Conclusion:

Ethereum price soared up to $770 at the time of writing of this analysis. As per our technical analysis, even though a downwards price correction attempt can become active for some time, conditions are favorable to see the price of ether head up to $849.08 during the next 24-48 hours.

Charts from Bitfinex, hosted on Tradingview.com

 


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