Ethereum saw a notable increase of 5% today taking its price to $194.71. The week was, however, and the price declined by 8.41%. The good news is that Ethereum has rebounded at a long term support trend line and looks like it will hold moving forward.
This latest rebound is supported by the increase in the price of BTC as well. If ETH can continue to develop the reversal against BTC we could see a strong resurgence. ETH remains the second-largest cryptocurrency with a market cap of $20.88 billion.
Looking at the ETH/USD 1-Day Chart:
- Since our previous ETH/USD analysis, Ethereum continued to drop below the support at $202 and $200 and continued lower until finding solid support at the 6-month-old rising support trend line. We can see that ETH had momentarily spiked even lower but had found support at the $176.50 level (provided by the downside 1.272 Fib Extension).
- From above: If the bulls can climb above the current resistance around $193.34 the next level of contention for the Ethereum bulls lies at $200 and $202. Above $202 higher resistance lies at $220 (200 days EMA) and $225 (100 days EMA). If the bulls continue above this congestion, higher resistance lies at $250, $250, $254, $271, and $279.
- From below: The nearest level of support lies at the rising trend line. Beneath this, we can expect further support at $176.48, $165.24 (downside 1.414 Fib Extension) and $149.52 ( downside 1.618 Fib Extension).
- The trading volume still remains below the average level.
- The Stochastic RSI is showing promise after delivering a bullish crossover signal in oversold territory. If the Stochastic RSI can continue to expand, we will certainly see Ethereum above $200 very soon.
Looking at the ETH/BTC 1-Day Chart:
- Against Bitcoin, the breakout we had mentioned in our previous analysis was false. The market rolled over and fell back into the boundaries of the descending price channel. However, we can see that in today’s trading session, Ethereum has now broken above the falling price channel. We will need to wait for a candle close to confirm this breakout – but if it is true, we could see Ethereum rising significantly very soon
- From above: The nearest levels of resistance lie at 0.01966 BTC and 0.02 BTC. If the price breaks through, higher resistance lies at 0.0204 BTC, 0.021 BTC, 0.02183 BTC, 0.02 BTC, and 0.0225 BTC.
- From below: The nearest level of support lies at 0.0185 BTC. Beneath this, we can expect support at 0.018 BTC, 0.017906 BTC, and 0.017670 BTC.
- The trading volume is starting to show signs that it may increase over the next few days.
- The RSI is currently battling the 50 level which shows the bulls are trying to take control over the market momentum. If we would like to see ETH/BTC surge, we would need to see the RSI climb and remain above the 50 level.