Ethereum has seem a small price increase totalling +0.15% over the last trading session. The Market now is exchanging hands at a price around $210.22 after seeing a relatively stable 7-day period where price action moved only +0.69%.
- Ethereum has pulled back slightly from its November high priced at $225.
- The market has found significant support at the .5 Fibonacci Retracement level priced at $209.16.
- Support levels moving forward: $209.16, $205.38, $202.82, $200.00, $197.84, $194.84, $193.15.
- Resistance levels moving forward: $212.80, $217.62, $222.78, $225.83, $229.47, $234.68.
The number 2 ranked cryptocurrency currently retains a market cap size totalling $21.69 billion. The coin has seen a 30 day price increase totalling 4.45% after a turbulent 90-day period where price action has dropped -24.74%. The 39 month old coin is now trading at a price that is -84% from it’s all time high price.
Let us continue to analyse price action over the short term and highlight any potential areas of support and resistance.
Ethereum Price Analysis
ETH/USD– SHORT TERM – DAILY CHART
Analysing the market from the short term perspective above we can see that after rebounding from the outlined support at the downside 1.414 Fibonacci Extension level (drawn in green) priced at $194.84 on the 31st of October, the market then went on to create a 16% price increase as it rose to a high of $225 on the 7th of November 2018.
The market was very close to hitting our initial price target at the 1.272 Fibonacci Extension level priced at $225.83 but fell slightly shy. Price action has since rolled over and has started to retrace. Ethereum has recently found significant support at the short term .5 Fibonacci Retracement level (drawn in blue) priced at $209.16.
Price action is now trading at resistance created by the short term .382 Fibonacci Retracement level priced at $212.80. If the buyers can progress and climb above this level of resistance we can expect immediate resistance above to be expected at the .236 Fibonacci Retracement level (drawn in blue) priced at $217.62 followed by the November high priced at $225.
If the bulls can continue to pressure the market above the $225.83 handle we can expect further higher resistance to then be located at the 1.414 and 1.618 Fibonacci Retracement levels (drawn in purple) priced at $229.47 and $234.68 respectively.
On the other hand, in our bearish scenario, if the selling pressure continues to drive price action lower we can expect immediate support to be located at the short term .5 Fibonacci Retracement level (drawn in blue) priced at $209.16 followed by the .618 and .786 Fibonacci Retracement levels (drawn in blue) priced at $205.38 and $200.00.
If the bearish momentum continues to push price action further below $200 we can then expect support beneath to be located at the downside 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $197.84 and $194.94 respectively.
The RSI has been oscillating around the 50 handle not really showing much positivity towards any direction. If the RSI can break above the 50 handle and continue to climb higher this would signal that the bulls are now back in control of the market momentum.
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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.