It's a bearish first half of the week. Ethereum would need to move through to $320 levels to resume the upward momentum,
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.
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.
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
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.