On July 17, 2019, the Ethereum (ETH) price reached a low of $191.16. An upward move began shortly after. The price reached a high of $235.27 on July 20. It has been decreasing since.
Will Ethereum continue trading above $200? In order to answer this question, we are going to analyze the ETH price in different time-frames alongside technical indicators.
For our previous analysis, click here.
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Ethereum Price: Trends and Highlights for July 25
- ETH/USD broke out from a descending channel.
- The price has made one higher low.
- It is possibly trading inside an ascending triangle.
- In the long-term, it is following an ascending support line.
- There is resistance at $230.
- There is support at $170.
Previous Movement
Since reaching a high on July 20, the ETH price has been trading inside the descending channel outlined below.
On July 25, it broke out from the channel.
The breakout transpired with average volume, reducing its significance.
In order to figure out future price movements, we will take a longer-term look in order to put this current breakout into perspective.
Higher Low
A look at the previous decrease beginning on July 10 shows that the price has not yet retraced above any significant areas.
As for now, it has barely grazed the 0.382 fib level of the entire downward move, which is at $240.
After that, there should be significant resistance at $265.
However, the current price movement gives hope for a future upward move.
The price has made one higher low, which has occurred inside a significant support area found near $205.
While not yet confirmed, it seems as if Ethereum is following an ascending support line.
Combining this line with the resistance offered by the 0.382 fib level, we get an ascending triangle.
While this pattern is not yet confirmed, it is a development to keep an eye on in the next few days.
Long-Term
A look at the daily chart shows us that the price has been following an ascending support line since the beginning of February.
Also, we can see two other important reversal areas.
There is significant resistance at $230, which previously acted as support throughout May and June.
Also, there is a strong support area at $170. However, a breakdown would be required for the price to reach it.
Looking at the moving averages (MA) gives us a neutral outlook.
The price is trading above the 200-day MA, which coincides with the support area.
However, it is trading below the 100-day MA, which coincides with the resistance area.
In the short-term, the price has moved above the 10-day MA.
Also, the daily candle for July 24 had a long lower wick, indicating that there is buying pressure in the market.
While the short-term outlook seems bullish due to its previous movement and long-term indicators, we cannot confidently say that the ETH is likely to begin an uptrend.
Summary
The Ethereum price is trading inside a potential ascending triangle. According to our analysis, it is likely to keep trading inside of that triangle devoid of any significant fluctuations. Eventually, a breakout seems slightly more likely. What do you think will happen to the price of Ethereum? Let us know your thoughts in the comments below.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.
