Ethereum price soared during Wednesday’s trading sessions to record a day high of $527.05. The bullish wave continued controlling Ethereum’s market during Thursday’s trading sessions to breach the resistance around $545.17 (76.4% Fibonacci retracement) as we predicted during yesterday’s analysis. Ethereum price continued rising along the new uptrend line, which has been evident since April 10th, reaching $559 at the time of writing of this analysis.
Will ethereum price continue rising during the next 24 hours?
“Three white soldiers” apparent on the 4 hour ETHUSD chart:
Let’s examine the 4 hour ETHUSD chart from Bitfinex, while plotting the 20 period, 50 period, and 100 period SMAs, as shown on the below chart. We will also keep the Fibonacci retracements we plotted during yesterday’s analysis. The orange transverse line represents the 76.4% Fibonacci retracement which corresponds to the $545.17 price level. We can note the following:
- Ethereum price managed to breach the 76.4% Fib. retracement ($545.17) earlier during Thursday’s trading sessions. Note that a strong upwards trend was ignited after a candlestick touched the upwards trend line (blue upwards sloping line).
- A “three white soldier” candlestick pattern has been formed by the last candlestick of Wednesday’s sessions, and the early pair of candlesticks of Thursday’s sessions. This pattern reflects the current bullish sentiment of the market. The pattern is not typical, as the latest candlestick has a relatively long downwards shadow. However, it still represents a significant bullish signal, due to the fact that it was followed by a break through a key resistance level.
- The 20 period SMA has just crossed above the 100 period SMA. This is a strong bullish signal that is sometimes referred to as a (golden cross). Also, the 20 period SMA has crossed above the 50 period SMA on April 13th, which also reflects the current bullish sentiment of the market.
Now, let’s examine the 1 day ETHUSD chart while plotting the RSI oscillator, and the Ichimoku Cloud indicator, while keeping our Fibonacci retracements from yesterday’s analysis. We can note the following:
- After breaking through the resistance around $545.17, the next significant resistance lies around $713.24, which corresponds to the 61.8% Fib. retracement. However, some resistance may face the market’s bulls around $620 as evidenced by historical data from last December.
- Ethereum price has crossed above Ichimoku’s Cloud Base Line (red line), which reflects the market’s bullish momentum. Moreover, the Conversion Line (blue line) has just crossed above the Base Line (red line), which represents another bullish signal.
- The RSI currently values near 60, which means that Ethereum price is still not overbought at the current price levels. The RSI curve is sloping in an upwards direction, so it is not diverging away from the current bullish price movement.
Conclusion:
Ethereum price has broken through a crucial resistance level around $545.17 during Thursday’s early trading sessions. As per our technical analysis, ethereum price will most probably continue rising as it won’t face significant resistance except near $620.
Charts from Bitfinex, hosted on Tradingview.com
