- ETH faces resistances of $1,150, $1,250 and $1,440.
- Weekly and daily data are bullish.
- The ETH/BTC pair has crossed a downward resistance line.
The price of Ethereum has risen more than 40% in recent weeks, and is now approaching record highs.
Although the long term trend is probably still rising, a short term decline is expected before Ethereum resumes its upward movement.
Long-term levels of Ethereum
ETH’s course increased considerably during the week of December 27th to January 4th, by almost 43%. ETH continued to rise during the day on December 4, reaching a peak of $1,162.97. However, the price could not hold at this level, creating a long top streak before falling back below $1,000.
This $1,162 peak also coincides with the fibonacci 0.786 retracement level of $1,150. If ETH continues to rise, the next resistance would be at $1,250, before its record high of $1,440.
Although they are showing overbought levels, the technical indicators remain bullish. This tells us that the ETH will likely continue to rise, and may eventually reach a new historical high.
As with the weekly chart, indicators for the day’s data remain bullish. That said, the current daily candlestick is taking the shape of a shooting star, which is normally considered a bearish reversal candlestick.
Ethereum’s daily close will be extremely important to help determine if the Bitcoin Trader has reached a ceiling.
The two-hour chart shows the first signs of weakness in the form of a lower momentum bar in the MACD, as well as a decline in the RSI of the overbought territory. In addition, the ETH is following an upward support line, which is currently near $800.
Thus, if ETH continued to decline, it would likely find support near $800.
Ethereum Wave Count
Crypt trader @TheEWguy presented an ETH chart, saying the price is in an extended third wave and will likely continue to rise above $1,000.
The wave count suggests that ETH is still in the 5th sub-wave (in black below) of the third wave (in white) of a bullish momentum that began in March 2020.
The price has already surpassed the $1,026 target for the top of wave 3, and is currently in rapid decline.
Thus, ETH is expected to decline in the short term to complete ka wave 4, before resuming its upward movement to a new historical high.
The ETH/BTC chart is bullish, as it shows a rebound in the 0.027₿ zone, followed by a break above a descending resistance line.
The next areas of resistance are 0.0335₿ (which has already rejected the price) and 0.04₿.
Technical indicators are bullish, indicating that the ETH should break through the $0.0335 zone and continue to rise. However, a decline to validate its crossing point could occur before this advance.
Charts for ETH/USD pairs such as ETH/BTC appear bullish, despite the possibility of short-term corrective movements.
It is expected that the ETH/USD pair will eventually climb to a new historical high.