U.S. Markets close in 4 hrs 20 mins

Ethereum Analysis – Support Levels in Play – 03/07/19

Bob Mason

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

More From FXEMPIRE: