Ethereum has seen a 5.18% price increase over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $210 after suffering a -7.66% price decline over the past 7 trading days. Ethereum was trading underneath the $200 until we saw the major bullish run this morning within BTC/USD pushing price action above $7000.
- Ethereum broke below our previously highlighted symmetrical triangle this week
- Support was found at the .786 Fib level below $200 before the market rebounded.
- The recent bullish momentum in BTC/USD has propelled the majority of altcoins higher today.
- Support levels moving forward; $212, $202, $200, $188, $184, $180, $171.
- Resistance levels moving forward; $222, $228, $245, $253, $266, $276, $288.
Ethereum is still holding its number 2 ranked position in terms of overall market cap across the entire industry. The 38-month-old coin has a total market cap value of $21.6 billion after suffering a -57% price drop over the past 90 trading days. Ethereum is still currently trading at a value that is 84% lower than its all-time high price.
Let us continue to analyse price action over the short term to highlight any potential support and resistance zones.
Ethereum Price Analysis
ETH/USD – SHORT TERM – DAILY CHART
Analyzing the market from the short term perspective above, we can see that since our last article, price action had broken below the confines of the symmetrical triangle that had been forming for over 4 weeks.
As the market dropped below the lower boundary of the triangle, it continued to drop below $200 until support was found at our expected level provided by the short-term .786 Fibonacci Retracement level priced at $188.61. AS the market approached this area, the bulls began to take control of the momentum within the market and caused the price decline to reverse.
We can see that the recent bullish momentum saw today price action has shot back above the $200 handle and continued even higher until rolling over around $244. The market is now trading around $218 as speculators wait patiently on the next market movement.
If the bears re-enter the market and pressure price action lower we can expect immediate significant support below to be located at the .5 and .618 short term Fibonacci Retracement levels priced at $212 and $202. If the bears can penetrate below these two support levels, then more support can be expected at the .786 Fibonacci Retracement level priced at $188 followed by the .886 Fibonacci Retracement level priced at $180.
Alternatively, if the BTC/USD markets continue to rise and the Ethereum bulls can continue with their recently established bullish pressure we can expect immediate resistance above to be provided by the .382 Fibonacci Retracement level priced at $222 followed by the short-term 1.272 and 1.414 Fibonacci Extension level (drawn in green) priced at $245 and $253.
If the bulls can continue even further higher, we can expect more resistance at the shorter-termed 1.414 and 1.618 Fibonacci Extension levels (drawn in blue) priced at $276 and $288.
The RSI technical indicator is trading at oversold conditions on the 4HR time frame. This indicates that the bulls are coming to the end of their momentum and need a break before they can continue higher. If the RSI can continue to remain above the 50 handles we can assume that the bulls are still in control of the market and that Ethereum will continue to trade higher.