The bulls continued strengthening their reigns on ethereum’s market during the past 48 hours, pushing the price of ether up to a day high of $830 on Saturday. Higher highs have been recorded each and every day during the past four days. The rate of rise soared after a critical resistance level around $713.24 has been broken last Wednesday. The market is moving towards testing another significant resistance level around $849.08. The bullish wave we are witnessing across ethereum’s markets seems to be secondary to bitcoin’s bullish run which is pushing the price of bitcoin upwards near $10,000.
Can we see the price of ether exceed $850 during the next 24 hours?
Williams Alligator’s mouth is “open and eating” on the 1 day ETHUSD chart:
Let’s study Bitfinex’s 1 day ETHUSD chart, while plotting Williams Alligator’s SMAs, the MACD indicator, and the Ichimoku Cloud, as shown on the below chart. (Note: we will keep the Fibonacci retracements we plotted during an earlier analysis). We can note the following:
- The rate of rise in the price of ether soared significantly, right after the resistance around the 61.8% Fib. retracement ($713.24) was exceeded last Wednesday. This is reflected by the large bodied bullish candlestick that represents Wednesday’s session. 4 successive bullish candlesticks were formed starting from Wednesday, and higher day highs have been scored during the past 4 days. Nevertheless, the relatively long upwards shadows of candlesticks corresponding to Friday’s and Saturday’s sessions, mean that the resistance is increasing as we are moving towards the 50% Fibonacci retracement ($849.08) (horizontal green line).
- Williams Alligator’s mouth is “open and eating” in the bullish direction, as the red SMA (teeth) is in the middle of the blue SMA (jaw) from above, and the green SMA (lips) from below. The gap between the three SMAs is also increasing, and all three SMAs are sloping in an upwards direction. All these signals reflect the strength of the current bullish wave.
- The Ichimoku Cloud is greenish (bullish). The price of ether is now above the cloud and moving further away from it, which denotes that the bullish wave is growing stronger. The Conversion Line (blue line) has crossed above the Base Line (red line). Candlesticks are currently above the level of the Base Line (red line). The Leading Span A (green) line of the cloud represents a support level on the downside, so $660 represents a strong support level that is very unlikely to be breached during the next 26 days (Note: the Ichimoku Cloud is shifted 26 periods into the future).
- The MACD indicator is still bullish, as its value is positive. The MACD blue line has crossed above the red signal line.
Let’s examine the 4 hour ETHUSD chart from Bitfinex, while plotting the 200 period, 100 period, and 50 period SMAs, as shown on the below chart. We can note the following:
- Ethereum price is still soaring as per the rising trendline that has been obvious since April 7th. It also seems that $770 represents a strong support level as shown by the relatively long downwards shadows of candlesticks near this price level.
- The 50 period SMA has moved above the 200 period SMA. The 50 period SMA has also moved above the 100 period SMA, and the 100 period SMA is about to move above the 200 period SMA. These moving averages crossovers are known as “bullish crossovers” and reflect the strength of the current bullish wave.
Ethereum price is soaring, managing to score a day high of $830 on Saturday. According to our technical analysis, ethereum price is likely to continue on soaring to exceed $850 during the next few days.
Charts from Bitfinex, hosted on Tradingview.com
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