Ethereum price has been rising steadily during the past few days along the upwards trend line that has been evident since April 7th. $700 was repeatedly the day high on Saturday and Sunday. Repeated cycles of upwards price bursts followed by brief downwards price correction attempts have been evident on the 4 hour ETHUSD charts, since last Friday. However, the upwards trend line has been acting as a rising support level during the past few days. The market seems to be moving towards testing the resistance around $713.24 during the first few days of the upcoming week.
So, can we expect ethereum price to exceed $700 during Tuesday’s trading sessions?
ICHIMOKU CLOUD JUST TURNED GREEN ON THE 1 DAY ETHUSD CHART:
We will examine the 1 day ETHUSD chart from Bitfinex, while plotting the 50 day SMA (green curve), the 100 day SMA (red curve), and the Ichimoku Cloud, as shown on the below chart. We will maintain the Fibonacci retracements we plotted during an earlier analysis, which extend between the low recorded on October 23rd, 2017 ($273.50), and the high recorded on January 13th, 2018 ($1,424.06). We can note the following:
- During the past week, ethereum price has been recording higher highs during most of the days. However, on Saturday and Sunday, the day high was repeatedly $700, which reflects that the bullish momentum is somehow slowing down as we are approaching the resistance around the 61.8% Fibonacci retracement ($713.24) (the orange horizontal line on the above chart).
- The rising uptrend line (bluish upwards sloping trend line on the above chart) is acting as a rising support level that is preventing the drop of the price of ether below its level. This is evidenced by the rising day lows during the past few days, and the relative long downwards shadows of candlesticks of Wednesday’s and Thursday’s trading sessions. As price continues moving along this uptrend line, ethereum price will most probably rise towards testing the resistance around $713.24 early during the upcoming week. As repeated testing of a resistance level weakens it, the resistance around the 61.8% Fib. retracement ($713.24) is likely to be broken if it is tested again during the next 24-48 hours.
- Ethereum price is currently above the 50 day SMA, and the 100 day SMA. Moreover, the 50 day SMA is currently above the 100 day SMA, which reflects the current bullish sentiment of the market. The 50 day SMA acted as a support level that prevented further price drop during the trading sessions of last Wednesday and Thursday.
- The Ichimoku Cloud has just turned green (bullish), and ethereum price is currently above the cloud. Moreover, the Conversion Line (blue line) is above the Base Line (red line), and ethereum price is above the level of the Base Line. All these bullish signals conveyed via the Ichimoku Cloud indicate that we can see the price of ether exceed $700 early during the upcoming week.
RISING SUPPORT LEVEL EVIDENT ON THE 4 HOUR ETHUSD CHART:
Now, let’s examine the 4 hour ETHUSD chart from Bitfinex, while plotting the 50 period SMA (green curve), the 100 period SMA (red curve) and the Bollinger Bands indicator, as shown on the below chart.
- As the price of ether dropped near the level of the uptrend line, it became evident how this uptrend line is supporting price quite well, as shown by the formation of a “doji”, and the long downwards shadows of candlesticks.
- A “bullish crossover” is now evident, as the 50 period SMA has crossed above the 100 period SMA.
- Since last Thursday, repeated bouts, consisting of bullish bursts followed by downwards price correction attempts, have been evident on the chart. These repeated bouts have been supported by the upwards sloping trend line (greenish trend line on the chart). As such, the market is steadily moving towards retesting the resistance around $713.24 (orange horizontal line) early during this week.
Ethereum price has been moving along an upwards trend line during the past few days. Even though the price of ether failed to exceed $700 during Saturday’s and Sunday’s trading sessions, we are most likely to see it move towards $713.24 during the next 24-48 hours.