Can Ethereum Break The 2020 High On This Next Attempt?


ethereum

Can Ethereum Break The 2020 High On This Next Attempt?

  • Ethereum witnessed a small 2.5% price drop over the past week as the cryptocurrency trades at $260.
  • Despite the recent price fall, ETH is still up by a total of 55.6% over the past 30-days of trading.

Ethereum has been struggling slightly this week after meeting resistance at the $285 level. It was attempting to break above this level twice during February and has failed on both occasions.

Luckily, the cryptocurrency is finding support at around $256 and looks ready to take another run at the aforementioned resistance level.

Ethereum Price Analysis

ETH/USD – Daily CHART – SHORT TERM

cg-ethusd-feb21
ETH/USD – DAILY – Source: TradingView

Market Overview

We can see that ETH dropped from the resistance at $285 as it rolled over to fall back into the support at $256.20, provided by a short term .236 Fibonacci Retracement level. 

The bulls are attempting to drive higher again as they shape up for the rebound.

Short term prediction: BULLISH

Ethereum remains bullish after rebounding from the $256 support. It would need to drop beneath $220 before we could consider the bull run to be over.

If the buyers climb higher again, the first levels of resistance lie at $271.70, $278, and $265.37 (2020 high). If they can break beyond the 2020 high, we can expect additional resistance at $290 (1.272 FIb Extension), $298 (bearish .5 Fib Retracement & 1.414 Fib Extension), and $300.

Above $300, higher resistance is then expected at $310 (1.618 Fib Extension), $315, $334, and $349 (bearish .618 Fibonacci Retracement level).

On the other hand, if the sellers push beneath the current support at $256, we can expect immediate support at $250. Beneath this, additional support lies at $240, $237 (.382 Fib Retracement), $225, $221.30 (.5 Fib Retracement), and $205 (.618 Fib Retracement).

The RSI has dropped back into the 50 level but it is shaping up for a rebound which shows that the bulls are still in control over the market momentum. One important indicator to note is the fact that the 100-days EMA recently crossed the 200-days EMA giving light to a very strong bullish long term signal.

Key Levels

Support: $256, $250, $247, $240, $235, $230.

Resistance: $271, $278, $285, $290, $298, $300, $310, $314, $334.

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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