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Will Ethereum Break Out Above Resistance?

2 mins
Updated by Ryan Smith
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In Brief

  • Ethereum is trading inside a short-term parallel descending channel.
  • There is support and resistance at $220 and $237, respectively.
  • ETH/BTC has broken down from an ascending support line.
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The Ethereum (ETH) price is currently trading inside a minor support area and has shown numerous signs of weakness, all of which suggest that a short-term fall awaits.
Note: This is a shorter-term analysis. For a longer-term one, click here.

Trading Range

On the 6-hour chart, the primary resistance and support levels for Ethereum are found at $237 and $220, respectively. The price reached the resistance area earlier today but created a bearish candlestick with a long upper wick and above-average volume before falling. Furthermore, it seems that the price is trading inside a short-term descending parallel channel, currently sitting near the resistance line. If the price declines towards the support line, it is likely to bounce ($220), considering that the area has supported the price three times already. The possibility of this downward move taking place is also supported by the fact that the RSI was rejected by the 50 MA line and is moving downwards.
Ethereum Descending Channel
Ethereum Chart By Tradingview
Well-known trader @Anbessa100 shares this belief, as she stated that the Ethereum price is likely to dump soon:
Ethereum Movement
Source: Twitter
The hourly chart reveals that the price is also facing resistance from the 200-hour moving average (MA). In addition, we can see that volume has been much higher during bearish candlesticks, and that there is a slight bearish divergence in the RSI. All signs point to the Ethereum price moving down in the coming days. If this occurs, the rate of decline is likely to accelerate if ETH loses the $229 minor support area.
ETH SHort-Term
Ethereum Chart By Tradingview


The ETH/BTC chart also paints a bearish picture. The price has broken down from a rising support line that had been in place since May 16. It is currently in the process of validating it as resistance. Similar to ETH/USD, the RSI has been rejected by the 50 MA line and is decreasing. If the price continues its downward movement, the closest support area is found at ₿0.0225, between the 0.5-0.618 Fib levels of this entire upward move.
Ethereum Chart By Tradingview


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.

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...