Bitcoin and Ethereum – Weekly Technical Analysis – August 9th, 2021
Ethereum jumped by 17.92% in the week ending 8th August. Following a 16.56% rally from the previous week, Ethereum ended the week at $3,014.13.
A bearish start to the week saw Ethereum fall to a Tuesday intraweek low $2,445.58 before making a move.
Ethereum fell through the first major support level at $2,606 before rallying to a Sunday intraweek high $3,191.99.
The extended rally saw Ethereum break through the first major resistance level at $2,786 and the second major resistance level at $3,016.
More significantly, Ethereum also broke through the 38.2% FIB of $2,740 to end the week at $3,000 levels. A bearish end to the day on Sunday saw Ethereum fall back through the second major resistance level at $3,016.
5-days in the green that included an 8.63% rally on Wednesday and a 9.34% breakout on Saturday delivered the upside for the week.
For the week ahead
Ethereum would need to avoid the $2,884 pivot to bring the first major resistance level at $3,322 and the 23.6% FIB of $3,369 into play.
Support from the broader market would be needed, however, for Ethereum to break out from last week’s high $3,191.99.
Barring an extended crypto rally, the first major resistance level and 23.6% FIB would likely cap any upside.
In the event of an extended breakout, Ethereum could test the second major resistance level at $3,630.
A fall through the pivot at $2,884 would bring the 38.2% FIB of $2,740 and the first major support level at $2,576 into play.
Barring another extended sell-off in the week, Ethereum should steer well clear of the sub-$2,500 levels. The second major support sits at $2,137.
At the time of writing, Ethereum was down by 2.95% to $2,925.21. A mixed start to the week saw Ethereum rise to an early Monday high $3,036.47 before falling to a low $2,900.00.
Ethereum left the major support and resistance levels untested at the start of the week.