On August 11, 2019, the Ethereum price reached a low of $205. It traded inside a range of $205-$217 until August 14, when a rapid downward move ensued. The ETH price reached lows of $174 the next day. It has been increasing since then.
At the time of writing, it was trading at $183.
Will the Ethereum price continue to decrease or will it begin an upward move? Continue scrolling below if you are interested in finding out.
For our previous analysis, click here.
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Ethereum Price: Trends and Highlights for August 16
- ETH/USD broke down from an ascending triangle.
- There is support at $175.
- The RSI & MACD have generated bullish divergence.
- ETH is trading inside a short-term symmetrical triangle.
Previous ETH Price Movement
A look at the four-hour time-frame shows that Ethereum has been trading inside an ascending triangle since July 15.
The breakdown occurred with significant but not extreme volume.
Afterward, it looks as if ETH made a double bottom near $178.
A look at the daily time-frame gives us a support area at $175.
This is a suitable place for the initiation of a reversal.
Additionally, the RSI and MACD give a bullish sentiment.
Both have been generating bullish divergence since the middle of July.
Let’s take a look at the short-term to confirm whether this movement will transpire.
A look at the hourly time-frame shows that the Ethereum price has been trading inside a symmetrical triangle since August 15.
At the time of writing, it was trading in the middle of the triangle.
The symmetrical triangle is a neutral continuation pattern.
Since it has been created after a downward move, a breakdown is more likely.
A look at the moving averages does not give a clear indication of where the ETH price might go next.
The price is trading slightly below the 10- and 20-period moving averages.
However, the long lower wicks that have been created suggest buying power.
If a breakout occurs, there is strong resistance near $194. provided by the 0.618 fib level and the 100-period moving average.
However, due to the previous price movement, we believe a breakout would only be a temporary movement, and the price will again reach lows close to $175.
Ethereum Price Summary
The Ethereum price is trading slightly above a significant support area inside a short-term symmetrical triangle.
According to our analysis, it is likely to break down from the triangle and reach the support area.
A short-term temporary upward movement could occur before.
Do you think Ethereum will break out from the triangle? 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.
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