Ethereum price continued on rising today to score a day high of $830 earlier today. The price of ether has been recording higher day highs for four successive days now. Moreover, the closing day price has been rising since last Wednesday. The bulls’ control over the market is growing stronger as the price of ether is heading steadily towards a significant resistance level near $850. The rise in ethereum price is mirroring bitcoin’s soaring price which is approaching the $10,000 price mark.
Can we see the resistance around $849.08 breached before the end of the current week?
4 successive bullish candlesticks on the 1 day ETHUSD chart:
We will examine the 1 day ETHUSD chart from Bitfinex, while plotting the Ichimoku Cloud, the MACD indicator, and the Williams Alligator indicator, 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:
- After the 61.8% Fib. retracement ($713.24)(horizontal orange line) was breached last Wednesday, the rate of rise in ethereum price increased significantly. This is evidenced by the long body of the bullish candlestick that corresponds to Wednesday’s trading session. Since then, 4 successive bullish candlesticks have been formed, and higher highs have been recorded each and every day. However, the relatively long upwards shadows of candlesticks that correspond to Saturday’s and Friday’s trading sessions, denote that there is increased resistance towards the 50% Fibonacci retracement ($849.08) (horizontal green line).
- The MACD indicator is still bullish, as its value is in the positive territory. The MACD blue line is also above the red signal line. This reflects that the bullish wave is still active.
- The Ichimoku Cloud has turned into the green color (bullish). Candlesticks are above the cloud and moving further away from it, which reflects that the bullish wave is getting stronger. The Conversion Line (blue line) has crossed above the Base Line (red line). Ethereum price is above the level of the Base Line (red line). The Leading Span A (green) line of the cloud represents a support level on the downside, so $660 represents a strong support level that is very unlikely to be breached during the next 26 days (Note: the Ichimoku Cloud is shifted 26 periods into the future).
- As such, the most logical scenario is to see the price of ether continue rising towards $849.08 during the next few days. From the downside, levels of support are $713.24, followed by $660.
Let’s take a look at the 4 hour ETHUSD chart from Bitfinex, while plotting the 50 period, 100 period, and 200 period SMAs, as shown on the below chart. We can note the following:
- The price of ether is still moving along the upwards trend line that has been evident since April 7th. Even more, the relatively long downwards shadows of candlesticks near $770 denote that this price level is starting to act as a support level.
Ethereum price is still rising, successfully recording a day high of $830 on Saturday. As per our technical analysis, the price of ether will most probably continue on rising towards $850, before a strong downwards price correction attempt becomes evident.
Charts from Bitfinex, hosted on Tradingview.com