The price of ether has been soaring during the past week, continuing to move along an upwards trend line that had been marking the movement of the market since April 7th. The market’s bulls failed to push ethereum price above $700 which represented the day high repeatedly on Saturday and Sunday. The 4 hour ETHUSD chart has been exhibiting repeated bouts of bullish movements followed by brief price correction attempts, since last Friday. Nevertheless, a rising support level is now obvious and shows that the market is still bullish.
Will ethereum price manage to breach the resistance around $713.24 during the week ahead?
Rising towards the 61.8% Fib. retracement on the 1 day ETHUSD chart:
We will study the 1 day ETHUSD chart from Bitfinex, while plotting the Ichimoku Cloud indicator, the 100 period SMA (red curve), and the 50 period SMA (green curve). We can conclude the following:
- To identify key resistance and support levels, as per the current market conditions, we will plot Fib. retracements between the high scored on January 13th 2018 ($1,424.06) and the day low on October 23rd, 2017 ($273.50). We can note that the market bulls tested the resistance around the 61.8% Fib. retracement ($713.24) last Tuesday, yet they failed to break it.
- A rising upwards trend line (bluish upwards sloping line) has been marking the movement of the price of ether since April 7th. This trend line is acting as a rising support level which led to the recording of higher lows during last week’s trading sessions. As the market continues moving along this uptrend line, we can expect ethereum price to attempt testing the resistance around the 61.8% Fib. retracement ($713.24) again during the upcoming week. This resistance level is now weaker than it was last week, so it is more likely to be broken.
- The bullish wave controlling the market is still active, as candlesticks are currently above the levels of the 50 period SMA, and the 100 period SMA. Furthermore, the 50 period SMA, has moved above the level of the 100 period SMA, which serves as another bullish signal.
- The Ichimoku Cloud is now conveying four bullish signals:
- The color of the cloud has become green
- The Conversion Line (blue line) has crossed above the level of the Base Line (red line)
- Candlesticks have moved above the level of the cloud
- The price of ether is now above the Base Line
As such, we are likely to see the price of ether exceed $700 during the upcoming few days.
Bullish Crossover of Moving Averages (MAs) on the 4 hour ETHUSD chart:
Now, let’s study the 4 hour ETHUSD chart from Bitfinex, while plotting the 100 period SMA, and the 50 period SMA, as shown on the below chart. We can conclude the following:
- The 50 period SMA has just crossed above the level of the 100 period SMA. This is known as a “bullish crossover”, which reflects the current bullish wave that is controlling the ETHUSD pair.
- As shown by the green arrows and red arrows on the above chart, repeated cycles of bullish bursts followed by price correction attempts have been evident during the past few days. However, these cycles have been showing a rising support level, so we are most likely to see the market move towards the resistance around $713.24 during the next few days.
Conclusion:
Repeated cycles of bullish bursts followed by downwards price correction attempts have been obvious during the past few days on the ETHUSD charts. The bullish bursts failed to exceed $700, yet higher lows have been evident on the 1 day charts during last week’s trading sessions. As per our technical analysis, we are likely to see the price of ether exceed $700 during the next 24-48 hours.
Charts from Bitfinex, hosted on Tradingview.com
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