Ethereum price is likely to continue to move higher as it consolidates above key support levels
Ethereum price, like Bitcoin, was caught in a rage of sideways trading. This has caused Bitcoin to largely hover around the lower boundary of its multi-month trading range, unable to achieve any clear and decisive trends in either direction.
ETH/USD 4-hour chart | Source: TradingView
While many significant cryptocurrencies have kicked off a stable growth trend, the Ethereum price is not so lucky
Analysts are currently noting that Ethereum may be well-positioned to see some notable drawbacks in the coming days and weeks. Ethereum has witnessed one of its tightest transactions of sideways trading that it has seen throughout its history.
Since May, ETH has been trading mostly between $ 230 and $ 250, only breaking out of this range on a few brief occasions. During this time, it has been forming a strong correlation with Bitcoin. BTC’s bout of trading at the lower boundary of its long-held trading range has caused ETH to also trade just above its range-lows.
Bitcoin is also trading right above the lower boundary of its trading range at $ 9,100 because there has been a close connection with each other, where the next BTC will be able to give ETH a more definite trend.
Analyst Josh Olszewicz noted that this lackluster price action could soon end quickly. While pointing out the historical volatility of Ethereum, a respectable analyst came up with a chart that shows that significant movements almost always follow these tight consolidation periods.
“$ ETH is also very tight.”
— Josh Olszewicz (@CarpeNoctom) July 19, 2020
Regarding the impending volatility of Ethereum that could lead to that, an analyst noted that he was expecting the downside. In a chart he recently released, he set a short-term price drop target of $ 200, highlighting the massive resistance just above the current price level that made it impossible to climb higher.
Crypto analyst Calmly stated:
“Ethereum – Time to go swing short on ETH.”
— Calmly | full-time trader (@im_calmly) July 18, 2020
A significant breakout will make ETH surpass the extremely close resistance
According to cryptocurrency trader Byzantine General, Ethereum breaking above the red line seen in the chart below will reinforce the end of the bear-binding trend since mid-2019:
“Lmao imagine if that red line finally breaks. Bears would get their asses scorched.”
Macro ETH price analysis by trader “Byzantine General” | Source: TradingView.com
The red line is formed at the high of the bull market of 2019. Since its inception, it has limited ETH’s price protests, almost accurately marking February highs and levels in June and early this month.
There are many indicators that ETH may soon surpass that level. According to trader Cactus, Ethereum is likely to continue to rise higher as it consolidates above key support levels:
“ETH LTF Update: For the past seven days it seems bears have failed to break back below $ 238 with any conviction, thinking we are currently in mini accumulation before another leg up … If bulls can take out $ 246, then momentum should take us a lot higher, expecting a breakout soon.”
Source: Cactus’s Chart via TradingView
The Tom Demark Sequential, a time-based indicator that prints signals at inflection points in an asset’s trend, has also just flipped bullish. The indicator just printed a “9” candle just last week, suggesting a move to the upside will follow.
The on-chain indices also corroborate expectations that Ethereum will soon turn to an upside. An analyst has identified four factors that suggest that ETH will take a higher step. The market cap of ETH-based tokens has passed the value of all ETH, the number of ETH locked in DeFi has rocketed to 3.4 million coins, Ethereum sees increased network usage, futures for the cryptocurrency are still at manageable levels.
One risk for ETH, though, is selling pressure outweighing buying pressure caused by ICOs and miners. Brave New Coin analyst Josh Olszewicz suggested last week that there’s a likelihood the inflation of the asset is still outweighing demand:
“As impressive as DeFi ETH locked has become, it only recently surpassed ICO treasury selling and is nowhere near absorbing inflation since 2018 … b / c I’m looking at the $ ETH price chart with the $ ETH the on-chain data, and there’s a massive divergence here.”
With ETH trading in a macro bear market since its 2018 high, this seems to be the case.
You can also check Ethereum Price here.
- A Firm Break Above $ 246 Could Spark An Intense Rally That Leads Ethereum Price Towards To New High Level
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