Ethereum Price Analysis: ETH/BTC Finds Support at ₿0.02.

Will the decrease continue or is a reversal in store for ETH? Keep reading below in order to find out. For our previous analysis, click here.

Ethereum Price: Trends and Highlights for July 16

• ETH/BTC is following a descending resistance line.
• There is resistance near ₿0.0225.
• ETH is trading inside a longer-term descending channel.
• There is significant support near ₿0.02 and ₿0.01.

Previous ETH Price Movement

Between July 10 and 13, ETH traded inside a symmetrical triangle. The price broke out from the triangle and reached a high of ₿0.0243 before a rapid decrease began. Since then, it has been following the descending resistance line outlined below: As of now, it has made four attempts at breaking out above the line. However, all of them have been unsuccessful.

Possible Breakout for the Ethereum Price

A look at the RSI and the MACD suggests that the price is likely to continue attempting a breakout. Both have been generating bullish divergence. The divergence is more pronounced in the MACD. However, the fact that the Ethereum price is not following any support lines greatly reduces its validity. Therefore, we would expect the price to trade sideways or decrease slightly and create a valid trading pattern. Afterward, it could initiate a breakout. If it does, the closest resistance area will be found near ₿0.0225.

Descending Channel

A look at the longer-term shows that the Ethereum price has been trading inside a descending channel since the beginning of 2019. At the time of writing, it was trading right on the support line. The previous two times it did so, it began upward moves toward the resistance line. Similar to the short-term time-frame, a look at the RSI supports the initiation of an upward move. However, this divergence is only present in the RSI and is not very significant. Therefore, while we believe that the Ethereum price will begin a short-term upward move and reach the resistance area outlined in the first section, we cannot confidently predict a longer-term upward move towards the resistance line of the channel.

Long-Term Support

A look at the weekly time-frame shows that ETH is trading at its lowest levels since May 2017. It is currently trading inside a major support area near ₿0.02. A decrease below this level could trigger a rapid price decrease. At the current time, we do not believe this to be likely.

Summary

Ethereum is following a descending resistance line and trading inside a longer-term descending channel. An analysis of momentum indicators supports the initiation of a short-term upward move towards ₿0.0225. A decrease below ₿0.020 could trigger a rapid price decrease. Do you think the Ethereum price will break out above the resistance line? 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 Shutterstock, TradingView.