Ethereum Price Analysis: ETH/BTC Has Reached The Support Line. Will It Begin An Upward Move?

At the time of writing, the Ethereum price was trading at ₿0.018. How long will the price continue to decrease? Continue reading if you want to find out. For our previous analysis, click here.

Ethereum Price: Trends and Highlights for August 9

• ETH/BTC is trading inside a descending channel.
• There is support between ₿0.016-₿0.017.
• The RSI is deep into oversold territory.
• Moving averages provide a bearish sentiment.
• There is resistance at ₿0.019.

Approaching Support

A look at the weekly time-frame shows that the Ethereum price has been decreasing since the beginning of May. Additionally, it is very close to a significant support area. The support area is found between ₿0.016-₿0.017. Additionally, the RSI currently has a value of 24. This is the lowest value it has reached since 2016, indicating very oversold conditions. This suggests that the Ethereum price is likely to begin an upward move in the near future. However, it is not showing any signs of bullish divergence. Let’s take a look at the short-term to see if we can pinpoint when the reversal will occur.

Current Pattern

A look at the two-hour time-frame shows that Ethereum has been trading inside a descending channel since July 9. At the time of writing, it was trading very close to the support line. A closer look reveals that once it reached it, it created a bullish hammer. When found in a downtrend, this is often a sign of reversal. While it is possible that the price will do so, a look at moving averages (MA) suggests that the upward move will be short-lived. A bearish cross between the long-term 100- and 200-period MAs occurred on August 4. It was followed by a cross between the 10- and 20-period MAs on August 7. The price has been trading below all four MAs since. The use of these indicators makes it likely that the Ethereum price will continue decreasing at the rate predicted by the channel. However, the creation of a bullish hammer and the fact that the price has bounced on the support line makes us believe that a short-term upward movement will occur before. Create a free account at our partner exchange, BitMEX, to trade cryptocurrencies with up to a 100x multiplier.

Future Movement

One outline for possible price movement in the future is given below. However, due to the lack of bullish divergence and overall bearish sentiment, it is possible that ETH will not reach the resistance line. In that case, the price is likely to reach a resistance area and decrease. One resistance area that is found at ₿0.019 is outlined below.

Ethereum Price Summary

The Ethereum price is trading inside a descending channel. According to our analysis, it is likely to initiate an upward move towards the resistance line. Afterward, it is likely to continue its downtrend. Do you think ETH will begin an upward move? 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 and Shutterstock. If you are interested in margin 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!