Ethereum price continued rising during last week's trading sessions gaining around 17% in market value. The price of ether increased from an opening price of $536 to $625 at the end of the week. The market's bulls managed to breach an important resistance level around $545.17. At the time of writing of this analysis, ethereum is trading at a price of $637. As the market continues moving along the uptrend line, that has been evident since April 7th, the bulls won't face significant resistance except around $713.24.
How can we expect ethereum price to behave during the upcoming week?
Williams Alligator's mouth is "open and eating" on the 1 day ETHUSD chart:
Let's examine the 1 day ETHUSD from Bitfinex, while plotting the 100 period SMA, the 200 period SMA, and the Williams Alligator indicator, as shown on the below chart. We will also plot Fibonacci retracements that extend between the high recorded on January 13th, 2018 ($1424.30) and the low recorded on October 23rd, 2017 ($273.50). We can note the following:
- During last week's trading sessions, the market's bulls managed to breach a crucial resistance level around $545.17, which corresponds to the 76.4% Fibonacci retracement. As such, the bulls won't face any significant resistance on the upside except around the 61.8% Fibonacci retracement ($713.24).
- Ethereum price is still moving along the upwards trend line (blue trend line on the chart) that has been evident since April 7th. Higher highs have been recorded during most of the sessions. The rate of rise increased even more when a candlestick touched the trend line on April 17th.
- Ethereum price rose above the 100 period SMA during last week's trading sessions, which reflects an increase in the bullish momentum. The 100 period SMA is also above the 200 period SMA which is another sign reflecting the bullish sentiment of the market. As such, with this increase in the bullish momentum, chances are high that we can see the price of ether rise to test the resistance around $713.24 during the upcoming week.
- The heightened bullish sentiment of the market during last week's trading sessions, is also evidenced by the alignment of the SMAs of Williams Alligator. Now, the red SMA (jaw) is between the green SMA (lips) from below, and the blue SMA (jaw) from above. The alligator's mouth is now open and eating in the bullish direction.
- A "three white soldier" candlestick pattern was also formed during last week. This is also another significant bullish signal. It represents a good chance for traders to enter long, as usually the bullish momentum increases after formation of this candlestick pattern.
Green (bullish) Ichimoku Cloud on the 4 hour ETHUSD chart:
Now, let's take a look at the 4 hour ETHUSD chart from Bitfinex, while plotting the 50 period SMA, the MACD indicator, and the Ichimoku Cloud, as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:
- Ethereum price is now above the 50 period SMA. Note that the rate of rise increased after candlesticks soared above this key SMA.
- The Ichimoku Cloud is now greenish (bullish) and ethereum price has soared above the cloud. Also, candlesticks have risen above the cloud's Base Line (red line), which was followed by an increase in the rate of rise of the price of ether. The Conversion Line (blue line) has risen above the Base Line (red line). The Leading Span A (green line) of the cloud represents a support level in the future (after 26 candlesticks). As such, $600 will be a support level that will prevent price drop during the upcoming week.
- The MACD is also bullish, as the blue MACD line is above the red signal line. The value of MACD is in the positive territory now.
- The most logical scenario for the upcoming week is for ethereum price to continue rising towards the resistance around $713.24.
The bullish wave grew stronger during last week's trading sessions taking ethereum price above $600. As per our technical analysis, the price of ether will most probably continue rising to test the resistance around $713.24 during the upcoming week.
Charts from Bitfinex, hosted on Tradingview.com