Ethereum price has been recovering during the past couple of weeks after a bullish wave that had been controlling the market since the latter half of February. However, the market has been moving sideways during most of Tuesday’s trading sessions. A day high of $523.80 was recorded on Tuesday, before dropping down to a day low of $501.50. Earlier today (Wednesday), Ethereum price began to rise again along the upwards trend line that has been apparent on the ETHUSD charts since April 10th, as we will see later. The ETHUSD is about to test an important resistance level around $545.17 during the next 24-48 hours.

How can we expect Ethereum price to behave during the upcoming 24 hours?

New upwards trend line apparent on the 1 day ETHUSD chart:

We will examine the 1 day ETHUSD chart from Bitfinex, while plotting the 50 period SMA, the Williams Alligator’s SMAs, and the MACD indicator, as shown on the below chart. We can note the following:

  •  To mark basic resistance and support levels that will help us during our upcoming analyses, we will extend Fibonacci retracements that span from the low recorded on October 23rd, 2017 ($273.50), and the high recorded on January 13th, 2018 ($1,424.06). As shown on the above chart, we can note that ethereum price is heading towards a crucial resistance level around $545.17, which corresponds to the 76.4% Fibonacci retracement.

 

  • A new upwards trend line is now apparent on the chart (the blue trend line on the above chart) and proves that the bearish wave that was evident since the latter half of February, has been successfully reversed. A “bullish engulfing” candlestick pattern was completed on April 8th, and marked the beginning of a new bullish wave.

 

  • The Williams Alligator’s SMAs are realigning to exhibit a bullish signal, which confirms that the bullish wave is getting stronger. Now, the green SMA (lips) is on top, and the blue SMA (jaw) is on the bottom. The red SMA (teeth) is moving to lie between the lips and the jaw, which completes the bullish alignment. When this alignment is completed, we can say that the alligator’s mouth is “open and eating” in the bullish direction. As such, we can expect ethereum price to break through the resistance around the 76.4% Fib. retracement ($545.17) during the next 24-48 hours.

 

  • Even though the value of the MACD is still in the negative territory, it exhibits a bullish alignment, as the blue MACD line has crossed above the red signal line. The MACD is sloping in an upwards direction which boosts the significance of the bullish signal conveyed via the MACD.

 

Three “bullish engulfing” candlestick patterns apparent on the 4 hour ETHUSD chart:

Now, let’s examine the 4 hour ETHUSD chart from Bitfinex, while plotting the Williams Alligator’s SMA and the Ichimoku Cloud, as shown on the below chart. We can note the following:

  • An upwards trend line (bluish trend line on the above chart) is evident on the chart and confirms the current bullish sentiment of the market.

 

  • Three bullish engulfing candlestick patterns have been formed since April 6th. These patterns represent evidence that March’s bearish wave has been broken down and that a new bullish wave is controlling the market.

 

  • The Williams Alligator’s SMAs are exhibiting a strong bullish alignment. The alligator’s mouth is “open and eating” in the bullish direction. As such, we can expect Ethereum price to rise towards the resistance around $545.17 during the next 24-48 hours.

 

  • The Ichimoku Cloud has turned green (bullish). Ethereum price has climbed above the cloud, and the candlesticks have moved above the Base Line (red line). Furthermore, the Conversion Line (blue line) has crossed above the Base Line (red line). All these four signals are strong bullish signs conveyed via the Ichimoku Cloud.

Conclusion:

Ethereum price has been somehow moving sideways during the past 24 hours after a week of powerful bullish market movement. Our technical analysis predicts that ethereum price will most probably rise to test the resistance around $545.17 during the next 24-48 hours.

 

Charts from Bitfinex, hosted on Tradingview.com