Published: April 8th, 2020
As most probably know, Ethereum is number 2 coin, ranked by coin market capitalization and goes straight after the Bitcoin. This makes it an extremely interesting project in terms of price potential in the long run.
The weekly chart shows that price has found the support at $131 back in November 2019. Price attempted to break below this support on two occasions, although there was no clear break and close lower this price. There was the spike below in December 2019, and then, in March 2020 yet another spike, but no definitive breakout. Such price action might result in a strong bull run because the support hasn’t been broken. Considering this is a weekly chart, we can expect a strong correctional wave to the upside or even the beginning of a long term uptrend.
The first major resistance is seen at 38.2% Fibonacci retracement level at $265, which is confirmed by 88.6% Fibs applied to the most recent trend down.
Here on the Daily chart, the price has reached the bottom of the lower trendline of the descending channel. After that, it broke above the 38.2% Fibs resistance at $164 and then found the support at the very same level. As long as the price remains above the $164, we can expect further growth in the coming days, weeks and even months. The upside target corresponds to the upper trendline of the descending channel, which makes it even stronger resistance level.
On the 4-hour chart, price broke above the downtrend trendline followed by the breakout of the 200 Exponential Moving Average. We can clearly see that current support at $164 is being respected by the market, which does suggest that bulls are dominating. Nonetheless, ETH/USDT still remains under the risk of a stronger correctional move to the downside, and can potentially re-test the $134 support level, which is 23.6% Fibs. And only break and close below this support will invalidate bullish outlook
We can see that the support area has been formed between $161 and $164. Moreover, price broke above the ascending channel and on the recent correction down, rejected the 61.8% Fibs at $166. It seems like ETH/USDT is about to initiate yet another wave to the upside which very likely to be exponential.
Finally, the 30M chart shows, that Ethereum broke above the downtrend trendline and currently rejecting the 200 Exponential Moving Average. This actually might be the starting point of the impulsive wave up, but only if the price remains above the $166 support. Break below the $166 will most likely result in the decline towards $161 where consolidation can be extended before further growth will be seen.
Ethereum long term trend is getting more and more bullish, and it is possible, that price will be going up for the long run from this point onwards as long as support levels are being respected.
The key resistance area is seen between $260 and $265, which is confirmed by two Fibonacci retracement levels and the top of the descending channel on the Daily timeframe. If that resistance is broken, Ethereum is likely to be heading towards much higher price levels.
If ETH/USDT will break and close below $161.5 on a daily chart, it will immediately invalidate a bullish outlook where long term downtrend is likely to continue.
Support: 161, 164, 167
Resistance: 177, 260, 265