Today we begin the second day of the week, which is decisive for any trader. The market tends to achieve the highest or lowest of the week, every Tuesday. Discover this morning analysis of February 07: Will Ethereum (ETH) continue in the green?
Ether (ETH) bounced off the $1600 support
The second crypto by capitalization starts the week in a very quiet movement. Sure enough, Ether (ETH) showed no clear trend for Monday’s session. Nonetheless, we can see that yesterday’s high lined up with half of the weekend range at $1655. After that, the price bounced off the $1600 support, closing the session around $1630. With this neutral movement, we cannot yet see the direction that the price of ether (ETH) will take this week. But if the bullish momentum since the beginning of the week continues, we can favor a bullish scenario.
Since the weekend, ETH has started a slight downtrend. This would potentially be a correction from the previous week’s bull run. If so, we can consider a descent towards $1574 for today. This is the fib level 0.786 of the range for the week of January 30. In addition, it should be noted that the markets tend to make the low of the week on Tuesday. Thus, if ether (ETH) retreats to this level, we can envisage a bullish scenario this week.
Downside scenario
For the moment, it will be necessary to be attentive compared to the movement of the price today. If ether (ETH) recovers to $1671, it will likely be a bearish signal. In this case, it could be that the price goes down to $1500. In addition, there is also the presence of an RSI divergence on the scale daily. This increases the likelihood that ETH is on the verge of a year-to-date bullish correction.
However, we are going to bet on the bullish scenario, given that we are currently in a bull market. Also, the fear index is starting to look positive for the crypto industry. The $1574 level is ideal for going long.
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