Key Highlights
- Ethereum was up 10.79% to $830.99 against the U.S Dollar in the early part of this morning, as market sentiment towards the market improved through Wednesday.
- A bullish trend has been formed, with Ethereum looking to test the first major resistance level of $831.04 for a third time today, having moved through to an intraday high $835.87 in the early hours.
- Resistance will be on the stronger side with investors ready to lock in profits early.
Ethereum Price Support
Following Tuesday’s intraday low $555.56, support levels kicked in, with ETH/USD moving to an intraday high $851.20 before easing back to a $757.07 close on Wednesday.
Market sentiment has seen a vast improvement from Tuesday’s lows on expectations that regulatory action in the U.S at least will be more moderate than initially thought.
Ethereum hit a swing hi $835.87 this morning, breaking through the $831.04 resistance level for the 2nd time, before pulling back to $830.99 (+10.79%). A move through to $840 levels will be needed for a more sustained rally, with the next major resistance level sitting at $905, as ETH/USD looks to break back to $1,000 levels.
The trend continues to be bullish, though a failure to make a sustained break through $831.04 resistance levels could see ETH/USD fall back to the 23.6% FIB retracement of $791.73 before buying appetite returns.
The good news for Ethereum buyers is the fact that the threat of the PBoC banning the trading of cryptocurrencies domestically and overseas turned out to be fake news, with the cryptomarket bulls coming out in support, with calls of the cryptomarket cap hitting $1tn by the end of the year providing support.
We will expect resistance to be strong, however, holding back a move through to $1,000 in the near-term, as uncertainty continues to plague the market, with investors quick to lock in profits through the day.
Looking at the Technical Indicators
- Major Support Level: $703.27
- Major Resistance Level: $831.04
- Fib 23.6% Retracement Level: $791.73
- Fib 38% Retracement Level: $746.6
- Fib 62% Retracement Level: $673.64
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