On July 17, 2019, the Ethereum (ETH) price reached a low of $191. An upward move ensued. On July 20, ETH reached highs of $235. Since then, it has been decreasing. The $201 level has been reached three times, on July 24, 27 and 28.
For our previous analysis, click here.
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Ethereum Price: Trends and Highlights for July 29
- ETH/USD is trading inside a symmetrical triangle.
- It is following a long-term ascending support line.
- The weekly moving averages are providing resistance.
- There is resistance near $230.
- There is support near $170.
ETH Price Current Pattern
Since reaching the low on July 17, the Ethereum Price has been trading inside a symmetrical triangle.
At the time of writing, it was trading very close to the support line.
It has done so since July 27.
Since the triangle is considered a neutral pattern, we need to take a look at a longer-term time-frame to see whether a breakout or a breakdown is more likely.
Long-Term Support
A look at the weekly time-frame shows that the ETH price has been following an ascending support line since December 2018.
At the time of writing, it was trading right on the support line.
It is worth noting that the past four weekly candles have been bearish, starting with a massive bearish engulfing candle in the week of June 24-July 1.
A bearish outlook is also given by the moving averages (MA)
The price is trading below the 10- and 20-week MAs, facing very close resistance from the latter.
The 10-week MA is trending downward, possibly setting itself up for a bearish cross.
A look at the weekly time-frame gives a bearish outlook.
While it is possible that the price will increase, that should be considered a retracement in response to the prior rapid decrease and not the beginning of a new uptrend.
Short-Term Reversal
Going back to our short-term triangle, we can see that the RSI has begun to generate bullish divergence.
The divergence is visible in the lows of July 24 and 27.
However, it is not very significant, it is not present in the MACD nor in longer-term time-frames.
Therefore, its significance is greatly reduced.
However, it could still be sufficient in initiating a short-term breakout.
If that happens, we have outlined one resistance area below.
If the ETH price breaks out, we would expect it to reach the resistance area near $230.
At the current time, a breakout above this area seems unlikely.
Rather, the Ethereum price should trade between the long-term support line and the resistance area.
A breakdown remains possible, though we do not think it is likely in the short-term.
If one occurs, the closest support area is found at $170.
Summary
The Ethereum price is trading inside a short-term symmetrical triangle. According to our analysis, it is likely to break out from this triangle and reach the resistance area outlined above. However, the long-term outlook remains bearish. 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. Images are courtesy of TradingView.
