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Technical analysis

ETHUSD Analysis: Ethereum Price Might Break $220 Resistance Soon

Amandeep Sonewane | Nov. 5, 2018
ETHUSD Analysis: Ethereum Price Might Break $220 Resistance Soon

November 05, 2018 | AtoZ Markets

Ethereum price has experienced a major surge within the span of an hour yesterday. The price of the coin reached $218 levels after a sudden spike. At the time of press, the price of the coin is trading at a price of $210, with a market cap of $21.5 billion according to coinmarketcap.com data.

In the last 1 Week, the price of the coin has surged by $ 5.45 (2.68%) with a total volume of over $ 417.50 Million. The highest price, $ 218.16, was on 04 November 2018 at 20:00 GMT. The lowest price, $ 192.45, was on 31 October 2018 at 17:00 GMT. 

ETHUSD Technical Analysis

As per the technical charts, ETHUSD pair has formed a solid support base formed near $198 mark. Ethereum price has initiated an upward move and traded above the $210, $215 and $218 levels. The upside move was strong as there was a close above the $205 level and the 100 hourly SMA. The price traded as high as $218 and later the coin experienced a sharp downside correction.

On the other hand, the MACD(12,26) made a slightly bullish crossover by the signal and is currently trending just above the line. This has been an indication of a bullish rally for the ETHUSD pair but hasn't depicted any major uptrend till now.

Moreover, the 100 SMA line is above the long term 200 line which indicates that the path of least resistance is towards the upward direction. Thus, a bullish rally might be seen in the upcoming days.

According to Fibonacci retracement charts, the ETHUSD pair moved below the 50% Fibonacci retracement level of the recent wave from the $198 low to $218 high. The recent decline was sharp, but the price is now approaching the $204-206 support area. There are also two connecting bullish trend lines formed with support at $206 and $204 on the hourly chart of ETHUSD pair. The second trend line is close to the 61.8% Fibonacci retracement level of the recent wave from the $198 low to $218 high. Therefore, if the price continues declining, it could find a solid support near the $204-206 zone. Below $204, Ethereum price might test the $200 mark.

Looking at the chart, the ETHUSD pair clearly struggled to stay above $210, but it is still well supported above $204. On the upside, an initial resistance is at $212- $215, above this point the price might make an upward move toward $225-$230 levels. However, traders could experience a major hurdle near $220 resistance. 

In the short-term, the ETHUSD pair has witnessed a positive prediction. However, technical indicators under a longer scenario do not see much potential for the Ethereum coin and have predicted it to be slightly bearish, with the hint of a bearish movement.

Ethereum Pivot Points

Ethereum price is holding a strong weekly support at $200 and resistance near $220 levels.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.