On 15th August we published our analysis on ETHUSD showing dovish tone based on our 61.8% fibb retracement level on weekly chart - lying above our current market price. Our best sell zone label was placed there due to the strong fibb on top along with the weekly price action i.e 3390. The aforementioned resistance had played a strong ball since last 8 days with ETHUSD failing to break above and has reversed twice a few pips from below the resistance 3390. The next major resistance is waiting for the crypto at 3540 if 3390 is broken, which would indicate that the pair might be setting some momentum towards making higher highs in daily and reaching for its yearly highs with its next stop at 3903. Ethereum price maintains support near the 50% retracement at 3,042. ETH flashes a bearish momentum divergence on the daily Relative Strength Index (RSI) for the first time since February. Ethereum price currently shows a 41.08% gain for 3Q, marking the seven consecutive positive quarter.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Ethereum price climbed almost 100% from July 20 low to the August 16 high before stalling at the 61.8% Fibonacci retracement of the May-July decline at 3358. The rally’s strength led to four consecutive positive weeks, putting the run in the top range of four-week returns since 2018. The resulting correction has been in time versus price, with the drawdown only reaching 11.69% to date and positioning ETH for higher prices in the weeks ahead if the cryptocurrency complex cooperates. If ETH was successful to provide a breakout above 3390 - this price would turn into a firm support for the crypto to retest and settle some grounds for further highs. But for that to happen we need an impulsive fractal above the 61.8%fibb level. On the bearish end, we would need a breakout below 2922 which would change the 50% fibb level into a strong resistance as well as a point of retest - proceeded by dovish continuation of trend. 

ETHUSD

Aug 22 2021