Ethereum (ETH/USD) Hits 38.2% Fibonacci Retracement – All Eyes on $2,050

The sudden surge in the ETH/USD came on Wednesday, after Tesla and SpaceX CEO Elon Musk mentioned that he owns the second largest cryptocurrency, during the B-Word conference. After this revelation, Ethereum touched its highest level in a week, soaring up by more than 12% on Wednesday.

Elon Musk also repeated his support for cryptocurrencies in general, despite potential risks to the environment. Musk said that as Bitcoin mining was increasingly powered by renewable energy, Tesla will once again accept bitcoin for transactions.

Musk said that the only publicly traded stock that he owns is in Tesla and in cryptocurrencies. He said that he owns some Bitcoin, Dogecoin and Ethereum. He also revealed that he has been holding Bitcoin for the long term. He further said that if the price goes down, he will lose money, but he has no intentions of selling at higher prices or anything like that, because he would like to see Bitcoin succeed.

The news that Tesla might start accepting Bitcoin once again, because the mining process has shifted towards the use of renewable energy, added strength to the leading cryptocurrency, also driving the whole crypto market higher. ETH/USD also surged on Wednesday, following the market trend and reaching its highest level in one week.

Ethereum was supported by the news that Musk personally holds the cryptocurrency in his portfolio and does not intend to sell it anytime soon. All of this, combined with the recent weakness of the US dollar, gave the ETH/USD further upward momentum.

The ETH/USD is trading with a bullish bias at the 2,023 level. The coin has bounced off above the 1,734 double bottom support level. As you can see on the chart above, the ETH/USD has completed a 38.2% Fibonacci retracement at the 1,988 level. On the higher side, a crossover at this level could lead the Ethereum price towards the next resistance level of 2,150 and 2,390.

Both of these levels are extended by 61.8% and 88% Fibonacci retracement levels. The leading indicators, like the RSI and the MACD, support a buying trend; therefore, a breakout at the 2,048 resistance is likely. Let’s keep an eye on the 2,048 level, as buying could be seen above this level today. Good luck!