Ethereum faced significant pressure due to recent
regulatory actions and a shift towards a more hawkish repricing of Fed interest
rates. However, the cryptocurrency showed a remarkable resilience and staged a
strong rally once the hawkish expectations subsided, and regulatory
uncertainties settled. All else being equal, the recent strong bounce from a
key support level indicates that Ethereum’s pullback may have ended,
potentially paving the way for new higher highs. However, if we get another
round of hawkish repricing triggered by strong economic data, or even a
recession, we could see more downside for Ethereum.
Ethereum Technical Analysis
– Daily Timeframe
On the daily chart, we can see that Ethereum has
bounced right from the upward trendline and the
61.8% Fibonacci retracement level.
The price since then rallied strongly and even broke out of a key downward
trendline before stalling at the 1930 swing high level. We are now seeing some
consolidation beneath the resistance but the
bias for now remains bullish.
Ethereum Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can see that the price has
pulled back into the upward trendline where we can also find the 38.2%
Fibonacci retracement level. This is where we should see the buyers stepping in
with a defined risk below the trendline and target a break above the 1930
resistance to reach eventually the 2100 high. The sellers, on the other hand,
will want to see the price breaking lower to pile in and extend the selloff
into the 1681 support.
Ethereum Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can see more
closely the current bullish setup with the price reacting to the trendline.
From here we should expect the price rallying towards the 1930 resistance. If
the bounce fails and the price breaks lower, then we should expect the price to
fall into the broken downward trendline first and then possibly extending the
selloff into the 1681 support.
This week is
relatively calm on the data front with only the US Jobless Claims tomorrow and
the US PCE on Friday. However, we will hear from many central bank members,
including Fed Chair Powell today.
This article was written by FL Contributors at www.forexlive.com.