On May 30, the Ethereum price reached a high of $289.42. A rapid decrease was followed by a gradual increase. A high slightly above $272 was reached on Jun 2. Since then, the ETH price has been on a downward trend.
Three lows near $236 were reached on June 4, 5 and 6.
Below, we are going to analyze the Ethereum price in different time-frames, alongside technical indicators, in order to try and predict future movement.
Ethereum Price (ETH): Trends and Highlights for June 7
- The Ethereum price reached a high of $289 on May 30.
- It is trading inside a descending wedge and a short-term horizontal channel.
- The moving averages are very close to making a bearish cross.
- There is support near $230.
ETH Price: Horizontal channel
The price of Ethereum is analyzed at two-hour intervals from Jun 4 to Jun 7 in order to analyze its current pattern.
On Jun 4, ETH/USD reached a low of $225.22. A gradual upward move ensued and the ETH price reached a high of $251.51 the same day. Since then, it has been trading between these two levels, creating the horizontal channel outlined below:
At the time of writing, the Ethereum price was trading close to the resistance line of the channel.
Furthermore, this resistance line coincides with the resistance of the slightly longer-term descending wedge it has been trading in since May 30.
Ethereum Price: RSI and Moving Averages
The Ethereum price is analyzed alongside the RSI below:
On Jun 7, the ETH price made two highs near $251. During the same time, the RSI generated lower values.
This is known as bearish divergence and often precedes price decreases. Furthermore, it is occurring in a double top, which is a bearish reversal pattern.
However, the divergence is only present in very short-term time-frames.
Therefore, we have outlined the price alongside the 10- and 20-day moving averages (MA) below:
The Ethereum price is trading below the 10- and 20-day MAs, which are providing resistance to the price.
Furthermore, they are very close to making a bearish cross.
The use of these indicators makes it unlikely that the price will break out of the wedge. A decrease is likely.
Where will the price find support?
Reversal Areas
A support area is traced for ETH/USD below:
The closest support area is found near $230. If the ETH price continues to decrease at the rate predicted by the wedge, it should reach this area on Jun 8-10.
Summary
To conclude, the price of Ethereum (ETH) has recently experienced significant decreases. It is currently trading in a short-term horizontal channel and a longer-term descending wedge. The technical indicators make a breakout unlikely. What do you think about the future outlook for the price of Ethereum (ETH)? 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.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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