Ethereum Analysis – Support Levels in Play – 03/07/19
Ethereum Price Support
It’s been a bearish first half of the week. Following last week’s 2.76% gain, Ethereum was down by 8.13%, Sunday through Tuesday.
A bearish start to the week saw Ethereum slide by 8.51% on Sunday to set the tone early on.
In spite of finding support on Monday to hold on to $290 levels, with a 1.25% gain, the reversal continued on Tuesday.
Ethereum fell by a further 0.84% to end the day at $291.25.
Falling from a current week high $323.61 from Sunday, Ethereum fell to a current week low $270.42 on Tuesday.
Steering well clear of the first major resistance level at $363.16, Ethereum fell through the first major support level at $272.17 before recovering to $291 levels.
While falling back from the 38.2% FIB of $367, Ethereum managed to steer clear of the 23.6% FIB of $257.
The extended bearish trend, formed at last May 2018’s swing hi $828.97, remained firmly intact, however. Ethereum continued to fall short of the 38.2% FIB Retracement Level of $367, following December’s swing lo $80.6.
For the bulls, a breakout from the 38.2% FIB of $367 would be needed to form a near-term bullish trend.
At the time of writing, Ethereum was up by 0.67% to $293.19.
For the remainder of the week
A move back through to $320 levels would signal a 2nd half of a week rebound. Ethereum would need support from the broader market, however, to break out from $300.
In the event of a broad-based crypto rebound, a move through to $320 levels would bring the first major resistance level at $363.16 into play.
Barring a crypto rally going into the weekend, however, the first major resistance level and the 38.2% FIB would cap any upside in the event of a bounce back.
With volatility returning to the broader market, a break through the 38.2% FIB would bring $400 levels into view.
Failure to move through to $320 levels would likely leave Ethereum on the back foot through the week.
A fall through the current week low $270.42 could see Ethereum slide through the 23.6% FIB of $257 before any recovery.
Barring a crypto meltdown, Ethereum should steer well clear of the second major support level at $227.34. A visit to $260 levels would be on the cards, however, in the event of a sell-off.
Looking at the Technical Indicators
Major Support Level: $272.17
Major Resistance Level: $363.16
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543
This article was originally posted on FX Empire
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