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Has Ethereum (ETH) Reached a Top?

2 mins
Updated by Ryan Smith
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In Brief

  • ETH/USD has broken down from an ascending support line.
  • There is support at $220 and $175.
  • For ETH/BTC, there is support at both ฿0.0257 and ฿0.0242
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The Ethereum price has broken down from a rising support line. After briefly validating this line as resistance, the price has resumed its downward momentum.
The ETH/BTC pair attempted a breakout above a crucial resistance area, but could not sustain the higher prices and has fallen back below this level.

ETH/USD

The Ethereum price had been following an ascending support line since it reached a bottom on March 13.  The price broke down from this line on June 25 and then proceeded to rally and validate it as resistance on July 8, before beginning the current slump. The last touch of the line also coincided with the $245 resistance area. In addition, the RSI has formed considerable bearish divergence, a sign that the price is likely to begin a downward trend. At the time of writing, ETH was holding on to the support of the 50-day moving average (MA), above which it has been trading throughout the entire upward move. A loss of this MA would cause a fall to the minor $220 support area, and possibly the $172 area, which is the 0.5 Fib level of the entire upward move.
Ethereum Breakdown
ETH Chart By Tradingview

ETH/BTC

Cryptocurrency trader @Damskotrades stated that the Ethereum price has fallen below an important support level, and has outlined a continued decline that should take the price to ฿0.024.
Ethereum Movement
Source: Twitter
The previous support level is found at ฿0.0257. While the price rallied above here on July 7, it has since fallen below. This makes it likely that the previous rise was a failed breakout and the price will now resume its downward move. Furthermore, this breakout was combined with significant bearish divergence on the RSI, a sign that the price will probably head south. The first minor support level is likely to be provided by the 50-day MA at ฿0.025, but the more important support level is found at ฿0.0242, which is also strengthened by the presence of the 200-day MA.
EThereum/Bitcoin
ETH Chart By Tradingview
To conclude, both the ETH/USD and ETH/BTC pairs have broken down from important support levels, and are primed for a continued decline towards the support areas outlined above.
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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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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)
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