On August 16, the Ethereum price reached a low of ₿0.0176. An upward move ensued, and the price reached a high of ₿0.0189 on August 18. After a short downward movement, ETH reached a higher high of ₿0.0191 on August 22.
Will Ethereum reach ₿0.02? Continue reading if you are interested in finding out.
For our previous analysis, click here.
If you are interested in trading Ethereum (ETH) and other cryptocurrencies with a multiplier of up to 100x on our new partner exchange with the lowest fees, follow this link to get a free StormGain account!
Ethereum Price: Trends and Highlights for August 23
- ETH/BTC is trading inside an ascending wedge.
- There is bearish divergence developing in the RSI.
- The price has found resistance at the 20-day moving average.
A look at the hourly time-frame shows that the Ethereum price has been trading inside an ascending wedge since August 15.
The ascending wedge is considered a bearish pattern, making a price breakdown more likely.
At the time of writing, the price was trading very close to the resistance line of the pattern, after previously making an unsuccessful breakout attempt on August 22.
Where will the price go next?
A look at the RSI suggests that a downward move towards the ascending support line is forthcoming.
It has been generating bearish divergence during the two recent highs at the resistance line on August 18 and 22.
The fact that the divergence is occurring at the resistance line of a bearish pattern increases its significance.
However, it is only present in short-term time-frames.
Therefore, while it makes a decrease towards the support line likely, it is not sufficient in predicting a breakdown.
A look at the daily moving averages (MA) reiterates the possibility that the ETH price will decrease towards the support line.
The Ethereum price is trading between the 10- and 20-day MAs.
Additionally, we can see that once it has reached the 20-day MA, decreases have ensued.
This was especially visible on August 14, when the price created a long upper wick.
The 20-day MA coincides with the resistance line of the wedge.
However, the MAs are possibly getting ready to make a bullish cross.
The creation/rejection of the cross can act as an indicator of whether the price will break down or continue increasing.
A possible outline for future movement is given below.
We believe the ETH price is likely to trade within the confines of the wedge, without breaking out/down.
Ethereum Price Summary
The Ethereum price is trading inside an ascending wedge.
According to our analysis, it is likely to decrease towards the support line of the wedge.
For trading purposes, we believe that the ₿0.019 level offers good shorting opportunities towards the low ₿0.018s.
However, because ETH is close to a long-term bottom, selling ETH should only be done in the short-term.
Do you think Ethereum will begin to decrease? Let us know 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 Shutterstock, TradingView.