Ethereum Still Lags
Weakness has hit Ethereum quite hard but like Bitcoin it has rebounded. It too, retraced to the lower bound of the KRI at $650, which seems to now be a technical and psychological level. It has rejected lower prices and is currently trading in the $730's, where it will find major resistance from a nested Fibonacci level.
The Kovach Momentum Indicators have been slow to price in the rebound, but are more optimistic on 30-minute charts than on day charts. ETH has a way to go before pressing the central moving average of the KRI, which will provide resistance in the low $800's.
Elliott Wave analysis still parallels with Bitcoin. We are clearly in some sort of a corrective phase, most likely wave 2 of the current impulse phase. The only silver lining is that momentum must eventually pick up as we enter wave 3. If momentum turns bearish again and we find ourselves in the $500's, it is time to worry.
Ethereum regained momentum after rejecting the $600 handle. Momentum does not seem as encouraging as with Bitcoin, but we will have support from a nested Fibonacci level at $730, then the psychological $700, then finally $650 again, which was the lower bound of the recent clout. If we fall below that level again, ETH is in trouble. From above, we will find resistance from levels separated by wide vacuum zones at $750, $780, and $809.
CONCLUSION - ETH has rebounded from lower levels, regaining footing in the $700's. It has support from an immediate level at $730. More support will follow from there at $700 and $650, though if ETH pushes past the latter it is a very bad sign. From above, we have some targets spaced by comparatively wide vacuum zones. This fact will be beneficial if momentum lights up. The levels from above are $750, $780, and $809.
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