On August 15, 2019, the Ethereum price reached a low of $174.2. It began to increase, trading in a range between $180-$190 until August 18, when another upward move was initiated. On August 20, ETH reached a high of $233.3 — an increase of 17 percent in less than five days.
Will the Ethereum price continue trading above $200 or will it begin a downward move? In order to answer this question, we will analyze it in different time-frames alongside technical indicators.
For our previous analysis, click here.
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Ethereum Price: Trends and Highlights for August 20
- ETH/USD is following an ascending support line.
- There is resistance at $204.
- A bearish divergence has developed in the RSI and MACD.
- ETH is trading inside a long-term descending wedge.
- It is trading below most daily moving averages.
Ascending ETH Price Support
A look at the hourly time-frame shows us that:- The ETH price is following an ascending support line.
- There is a resistance area at $204.
The aforementioned upward move beginning on August 18 took the price away from the support line.
It reached the resistance area the next day and has been trading very close to it since — breaching its lower limits.
A look at the RSI and MACD suggest that the ETH price will not be successful in moving above this area.
Both have been generating a bearish divergence since August 18.
The fact that the divergence is present in both indicators and in longer-term time-frames makes us believe that the ETH price will soon begin a reversal.
It is likely to reach the support line near $193.
Long-Term Pattern
A look at the daily chart shows that the Ethereum price is trading inside a descending wedge — possibly having broken out.
The descending wedge has been in place since June 14, so a breakout above it could trigger a rapid increase.
However, the breakout occurred with very small volume, reducing its significance.
Additionally, the ETH price is trading below the 10-, 20, 100- and 200-day moving average.
This means that there is significant resistance left for the price to clear and diminishes the prospect of a continuing breakout.
Ethereum Price Summary
The Ethereum price has reached a significant resistance area. According to our analysis, it is likely to decrease towards the support line at $192. For trading purposes, we believe the current price level ($200) offers profitable shorting opportunities. Do you think ETH will decrease towards the support line? 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. Images are courtesy of Shutterstock, TradingView.
Disclaimer
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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