Ethereum Price Analysis: Will ETH/USD Reach $400?

Where will the Ethereum price go next? Keep reading below in order to find out:

Ethereum Price: Trends and Highlights for June 25

• The Ethereum price has not reached the 0.238 fib level.
• It is facing resistance from the 200-period moving average.
• The ETH price is trading inside an ascending wedge.
• It recently broke through a major resistance area at $280.
• It is trading inside a short-term horizontal channel.

ETH Price: Long-Term Analysis

After reaching highs of $1424.3 on Jan 2018, the Ethereum price began a long downtrend. So far, the lowest price has been $83.0, reached on Dec 2018. Using a fib retracement tool stretching from high to low, we can see that the price still has yet to reach the 0.236 fib level of the entire downward move. This level coincides with the 100-period MA, which is providing resistance to the price. This is in stark contrast to BTC, which is close to reaching the 0.5 level. On a more bullish note, the relatively short-term 10- and 20- period MAs have made a bearish cross and are offering support to the price. The weekly time-frame shows that the price of ETH has yet to confirm that it is in an uptrend. A weekly close above $380 would go a long way in doing that.

Ascending Wedge

With a closer look, we can see that the price of ETH has been trading inside an ascending wedge since February 2019. The ascending wedge is a bearish pattern. At the time of writing, it was trading close to the resistance line of the wedge. Looking at it closely, we can see that for a period of 35 days it created a strong channel of resistance near $280. This was especially evident during the candle of May 30, that reached the top of the resistance area before immediately reversing. However, on June 21, the price broke through this resistance level. The same area should now act as support. After the breakout, the Ethereum price has shown indecision. After reaching the resistance line at $322, it created a hanging man — which shows that there is selling pressure in the market. A swift reversal ensued and the price reached a low of $292. However, it immediately created a bullish hammer and drove the price up. A breakout/breakdown above these values would invalidate the current pattern of consolidation and could likely initiate rapid moves.

Short-Term

Finally, a short-term look shows that the price is trading inside a horizontal channel with even closer limits. The resistance line is currently at $317.5 while the support line is at $300. A breakdown below the support line would likely cause the price to decrease to the support area at $270-290. A continued decrease would likely cause a breakdown from the ascending wedge. On the other hand, a breakout could immediately lead to rapid price increases. Due to the previous market movement and the fact that the resistance and support lines are converging, we would expect continued trading inside the wedge until a decisive move occurs. If the price continues to increase at the rate predicted by the wedge without any rapid moves, it would reach the 0.238 fib level at $380 during the latter part of July. What do you think will happen to the Ethereum price? Let us know in the comments below.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of TradingView.