On August 15, the Ethereum price made a low of $174. A gradual upward move ensued. On August 20, the ETH price reached a high of $204. It has been decreasing since.
At the time of writing, it was trading at $185.
How long will the Ethereum price continue to decrease? Keep reading below if you want to find out.
For our previous analysis, click here.
For those of you who prefer a visual analysis, please click the video below:
Ethereum Price: Trends and Highlights for August 22
- ETH/USD has possibly broken out of a descending wedge.
- There is significant bullish divergence developing in the MACD and RSI.
- There is support at $180.
- There is resistance at $203.
- ETH is following a short-term ascending support line.
ETH Price in a Descending Wedge
A look at the six-hour time-frame shows that the Ethereum price has been trading inside a descending wedge since June 10.
On August 19, it broke out from the wedge.
The breakout occurred with minimal volume, decreasing its significance.
Afterward, the Ethereum price decreased and touched the previous resistance line.
This is a common occurrence, especially in low-volume breakouts.
Will ETH begin an upward move?
A look at the RSI and MACD supports the initiation of an upward move.
Both of them have been generating bullish divergence.
The divergence is more pronounced in the RSI.
Additionally, it seems as if the ETH price has created a double bottom — which is considered a bullish reversal pattern.
Combined with the divergence, this makes it likely that an upward move will begin.
A look at the two-hour time-frame gives us one support and one resistance area.
The support area is found at $180 while the resistance at $203.
Additionally, the Ethereum price is likely following an ascending support line.
An outline of possible future movement is given below:
Ethereum Price Summary
The Ethereum price recently broke out from a descending wedge.
According to our analysis, it is likely to increase towards the resistance area outlined above.
For trading purposes, we believe that the current levels offer a good buy opportunity for the short-term upward move towards the resistance area.
Do you think the Ethereum price will initiate an upward move? Let us know in the comments below. While you’re at it, trade Ethereum on the exchange with the lowest fees, StormGain!
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.