ETH/USD Establishes New Multi-Year High of 1170: Sally Ho’s Technical Analysis 6 January 2021 ETH

Ethereum (ETH/USD) extended its recent rally early in today’s North American session as the pair strengthened to the 1170.00 area after trading as low as the 1058.32 area during the Asian session, a test of the 50% retracement of the recent depreciating range from 1136.93 to 975.00.   Traders pushed ETH/USD as high as the 1170.00 area during the European session, a fresh multi-year high that eclipsed the recently-established multi-year high of 1168.99.  These successive highs were established after Stops were elected above upside price objectives including 976.68, 1013.45, 1043.34, 1072.78, 1086.45, 1133.44, and 1150.21.  Notably, the previous relative high of 1168.99 represented a test of another upside price objective, the 1163.93 area that became technically significant based on upside buying pressure that emerged around the 370.50 area in 2020.  Strong Stops were recently elected above the 819.23, 877.81, and 879.23 levels during the sharp ascent, upside price objectives related to previous buying activity around the 625.01 and 530.32 areas.  Additional upside price objectives include the 1239.06, 1381.03, 1439.98, 1582.86, and 1665.31 areas. 

Traders also note that sizable Stops were elected during the move higher above the 1103.87 area, a level that represents the 76.4% retracement of a historical depreciating range from 1419.96 to 80.60.  Additional significant Stops were recently elected above the 615.19, 637.79, 668.87, 679.78, and 698.88 area during the march to successive multi-year highs, and traders are curious to see how supportive those levels become during pullbacks lower.  Following the pair’s recent moves to successive multi-year highs, downside retracement levels and areas of potential technical support include the 997.67, 967.75, 908.32, 842.00, 828.97, 787.22, 750.28, and 718.33 levels.  ETH/USD gained approximately 21% month-to-date in December, and closed 2020 with approximately a 450% gain.  Traders are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly).   Also, the 50-bar MA (hourly) is bullishly indicating above the 100-bar MA (hourly) and above the 200-bar MA (hourly).

Price activity is nearest the 50-bar MA (4-hourly) at 860.79 and the 50-bar MA (Hourly) at 1065.73.

Technical Support is expected around 792.40/ 766.54/ 729.88 with Stops expected below.

Technical Resistance is expected around 1239.06/ 1381.03/ 1439.98 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

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