The price consolidation discussed in yesterday’s Bitcoin (BTC) analysis is also impacting Ethereum (ETH) price action. After the altcoin had worked through the golden pocket of the current movement at the beginning of the week, the Ether course subsequently turned south and fell back to the support at 1,904 US dollars during yesterday’s session. If Ethereum is now stabilizing in the green support area and does not slip further south at the end of the day, the view is directed further north. Only a drop below the cross-support from EMA 50 (orange) and horizontal support at 1,853 US dollars would be considered a short-term warning signal for the buyer side. The chart picture will continue to brighten as soon as Ethereum can break out of the purple resistance zone around $1,991 on the daily closing price.
Bullish price targets for the coming trading weeks
Bullish price targets:1,938 USD, 1,965 USD/1,991 USD, 2,019 USD, 2,072 USD, 2,115 USD/2,160 USD, 2,305 USD/2,346 USD, 2,467 USD
Similar to Bitcoin, the Ethereum bulls have recently shown the first signs of weakness. Overall, however, Ether chart remains bullish. Once the bulls reclaim resistance at $1,938, the view will once again turn towards the monthly highs.
If a dynamic jump towards $1,965 is successful and the ether course starts up to $1,991, a first preliminary decision should be planned. Optimally, Ethereum directly clears the purple resist area and surges to last month’s high of $2,019. An indication of this would be a stabilization of the key crypto currency Bitcoin above 31,000 US dollars. If Ethereum then breaks out of the resistance at $2,072, investors will focus on the blue resistance zone.
Between $2,115 and the old low of January 24, 2022 at $2,160, the ultimate showdown for the coming period takes place. If this area is then pulverized by the bulls, fresh upside potential will activate towards the intermediate-term target zone of $2,305-$2,348.
The trailing edge of the subsequent sell-off from May 2022, which is located here, paired with the 138 Fibonacci extension of the current movement is to be regarded as the next strong resistance area. Only when Ether price then stabilizes in the $2,150 range and prospectively moves north above the $2,346 mark does the focus shift to the maximum target price of $2,459. In addition to the resist from May of the previous year, the 161 Fibonacci projection of the current upward movement also runs here.
Bearish price targets for the coming trading weeks
Bearish targets: 1,911 USD /1,903 USD, 1,853 USD, 1,816 USD, 1.774 USD/1751 USD, 1,715 USD,1.651 USD/1,629 USD, 1,588 USD, 1,501 USD, 1,474 USD, 1,416 USD/1,371 USD
The bears recently attempted to halt the bulls advance in the purple resistance zone area and pushed the price back below $1,938 towards the old breakout level of between $1,911 and $1,903 on Wednesday morning. Already here the buyers seem to want to counteract this. Only when this zone has been breached by the daily closing price does the EMA50 come back into focus at 1,853 US dollars. If this support is also undercut, the consolidation will extend to the interim low at 1,816 US dollars.
Here again, resistance on the part of the buyer is to be planned. However, if this course mark is undercut dynamically, the red zone comes into focus. This area represents the short-term make-or-break chart level on the downside. This is where the bulls will need to be in action if they want to stay in control. If, contrary to expectations, the bears manage to undercut this area as well, the probability of a sell-off to the old breakout level at $1,715 increases significantly. If the bulls remain abstinent here too, and Ethereum dynamically breaks below $1,715, the chart picture will become increasingly cloudy. A price slide into the orange support area must then be planned for. Ethereum could form a double bottom between $1,651 and $1,629.
The buyer side should not miss the chance to make a new entry here. Because a sustained abandonment of $1,629 would have a signal effect and correspondingly bearish implications for the Ethereum chart. A further downward correction would be expected, which should allow the Ether course to correct directly to the area between $1,588 and $1,566. Above all, a sell-off in the direction of the historical low of March 10 between $1,416 and $1,317 could no longer be ruled out.
Ethereum: A look at the indicators
The daily chart’s RSI peaked as high as 62 before falling back towards the neutral zone again. It did not reach the overbought status. Although the MACD indicator also shows a buy signal, it is currently trending slightly south again.
On a weekly basis, the MACD is about to activate a fresh buy signal, but it needs a new historical high by the end of the week on Sunday. With a value of 57, the RSI now shows a long signal, but this also has to be confirmed, otherwise there is a risk of a relapse into the neutral zone here as well.
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