• Francisco Hernandez

Ethereum Is Facing Support

ETH-USD, 1W, BTSE

Ethereum (ETH) has had a good run since the previous low of $116.62, bouncing off the lower Bollinger Band (BB) and closing above the middle band (i.e., white; 20-week moving average) last week. This week it has broken past it. The 20-week MA will now likely act as resistance. The next level of support is the 23.6% Fibonacci retracement level at $155.00. Following this, ETH has 3 additional levels of support, including: the 5- and 10-day MAs (i.e., yellow and orange, respectively) and the 38.2% Fibonacci level. All this support appears between the range of around $146.12 and $148.85.


ETH-USD, 1D, BTSE

On the daily, ETH broke out of the upper BB on January 14th, 2020. It closed above it again three days later and attempted it once more the next day, but closed shy by just nine cents. I would have wanted to see a convincing break out anyway. This was merely testing the upper band, which did not hold. Currently, ETH had a nice bounce of the 23.6% Fibonacci level. The most relevant resistance point at the moment is near the previous high, near $173.93. As for support, ETH has the 100-day MA, around $157.46. Following that comes the 20-day MA and the 38.2% Fibonacci level, in the price range of $152.04 and $154.24.


The OBV is pointing down and has made a lower low. The MACD line (red) has crossed down past the signal line (blue) and buying pressure is diminishing (green histogram). The CMF is also pointing downwards, but it is still above the zero line.


Conclusion

On the weekly charts, Ethereum looks like is likely to face support, given its recent uptrend. ETH could reach support levels as low as $146.00. Good thing is that ETH has already moved up from the bottom of the Bollinger Band, now all it needs to do is stay in that area, find support, and retest the 20-week moving average.


On the daily chart, prices are cooling off from the recent gains. ETH broke past the BB twice higher buying volume than it has seen in the last month. I want to see what ETH does near 23.6% ($160.40) Fibonacci level, given a recent bounce from that area. I wonder if it will continue to test it just as Bitcoin is currently doing (and has been doing the last three days). Should support at this level break, I lean more towards what the weekly chart says and expect support in the $146.12 and $148.85 range. It is likely the current support level at $160.40 will not hold given all the indicators are pointing down, suggesting a pull back is underway.

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