Ethereum price continued rising throughout Friday’s trading sessions to score a high of $618. After the day’s high was recorded, a downwards price correction attempt pulled Ethereum price down to a day low $576. The market is still moving along the upwards trend line that has been evident since April 10th on the 4 hour ETHUSD chart. Since the 76.4% Fibonacci retracement ($545.17) has been successfully breached, the next strong resistance level lies around $713.24, which corresponds to the 61.8% Fibonacci retracement.
Will the market’s bulls still have the upper hand over the market during the next 24 hours?
Williams Alligator’s mouth “open and eating” on the 1 day ETHUSD chart:
Let’s examine the 1 day ETHUSD chart from Bitfinex, while plotting the Williams Alligator’s SMAs, and the MACD indicator, as shown on the below chart. We will also keep the Fibonacci retracements we plotted earlier this week that span from the low recorded on October 23rd, 2017 ($273.50), and the high recorded on January 13th, 2018 ($1,424.06). We can note the following:
- Ethereum price is still moving along the upwards trend line that has been evident on the 1 day chart since April 7th. Note that during the past two weeks, higher highs have been recorded during most of the days.
- A typical “three white soldiers” candlestick pattern has been formed by the last 3 candlesticks. The 3 candlesticks have no downwards shadows. The pattern is suggestive of strengthening of the bullish wave, especially that it is proceeded by a short bodied bearish candlestick (almost a doji). It represents a good opportunity to enter long, as most probably Ethereum price will record a high higher than that of Friday today.
- The Williams Alligator’s SMAs have completed a bullish alignment, so we can say that the alligator’s mouth is now “open and started eating”. The red SMA (jaw) is now between the green SMA (lips) from above and the blue SMA (jaw) from below.
- The MACD indicator is bullish. It has just entered the positive territory. It is sloping in an upwards direction. The blue MACD line has crossed above the red signal line.
- Chances are high that Ethereum price will continue on rising towards the next resistance level around $713.24, which corresponds to the 61.8% Fibonacci retracement, during the next 24-72 hours.
Now, let’s examine the 1 hour ETHUSD chart from Bitfinex. We will plot the Ichimoku Cloud, the 200 period SMA, and the Commodity Channel Index (CCI) oscillator, as shown on the below chart.We can note the following:
- Ethereum price is moving along an upwards trend that is also evident on the 1 hour chart. Candlesticks are way above the 200 period SMA, which reflects the strength of the current bullish wave.
- The Leading Span A (green line) of Ichimoku Cloud is acting as a support level that prevented further price drop. As Ichimoku Cloud is shifted 26 periods in the future, we can expect the $600 level to act as a support level during the next 26 hours.
- The CCI is a versatile momentum oscillators that is mostly utilized to detect trend reversals and overbought/oversold conditions. The CCI is better interpreted in conjunction with the 200 period SMA. As Ethereum price is currently above the 200 period SMA, and the CCI is above the -200 level, this shows that the uptrend is still active as Ethereum is soaring from oversold levels.
Conclusion:
Ethereum price is rising recording a day high of $618 during Friday’s trading sessions. As per our technical analysis, the bullish wave is most likely to continue pushing Ethereum price to higher levels to attempt testing the resistance around $713.24 during the next 24-72 hours.
Charts from Bitfinex, hosted on Tradingview.com
