On July 30, the Ethereum price reached a low of $203. An upward move ensued. On August 6, it reached a high of $231. The ETH price has been decreasing since.
At the time of writing, it was trading at around $210.
When will Ethereum begin to increase? Keep reading below if you are interested in finding out.
For our previous analysis, click here.
Ethereum Price: Trends and Highlights for August 12
- ETH/USD is following a long-term ascending support line.
- Weekly moving averages give a bearish outlook.
- It is trading inside a medium-term ascending triangle.
- There is resistance at $222.
Long-Term ETH Price Support
A look at the weekly time-frame shows that Ethereum has been following an ascending support line since December of 2018.
Previously, the line had been touched four times, increasing its validity.
At the time of writing, ETH was doing so for the fifth time.
A look at moving averages (MA) gives a bearish sentiment.
The Ethereum price is trading below both the 10- and 20-week MAs.
However, they have yet to make a bearish cross.
If that were to occur, it would act as confirmation that ETH is in a downtrend.
Judging by the slope of the 10-week MA, a bearish cross should occur soon.
A look at a shorter-term time-frame shows that Ethereum is following a horizontal resistance line.
Combined with the previous support line, this creates an ascending triangle.
The ascending triangle is considered a bullish pattern, making a price breakout more likely.
A look at the daily moving averages (MA) somewhat supports this claim.
The 10- and 20-day MAs have made a bullish cross, but the price is trading below both.
Additionally, we can see that the ETH price has found support above the 200-period MA.
The latter is gradually increasing.
Therefore, it is possible that ETH continues to increase at the rate predicted by the triangle, eventually reaching the resistance line.
A look at the hourly time-frame shows that since reaching the support line, ETH has been trading inside a short-term ascending triangle.
Both the resistance and support lines have only been touched three times.
If the Ethereum price continues to increase at the rate predicted by the channel, it is likely to meet resistance soon.
One resistance area is outlined below.
It is found at $222.
The Ethereum price should reach it within the next couple of days.
Afterward, after a brief retracement, it is possible that ETH will continue to increase until it reaches the resistance line.
Ethereum Price Summary
The Ethereum price is trading inside an ascending triangle.
According to our analysis, it is likely to move towards the resistance line of the triangle.
Do you think ETH will reach 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.
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