At Cryptotreat, we offer regular price analyses of Ethereum (ETH) and other cryptocurrencies. Today July 23 we are beginning a new series price analyses for top cryptocurrencies including Ethereum (ETH).
On July 17, 2019, the Ethereum price reached a low of $192. An uptrend began. On July 20, the ETH price reached a high of $236. It has been decreasing since.
Will Ethereum continue to decrease or is a reversal in store? Below, we are going to analyze the Ethereum price in different time-frames alongside technical indicators in order to answer this question.
Ethereum Price: Trends and Highlights for July 23
- ETH/USD is trading inside a descending channel.
- It is following a long-term ascending support line.
- Long- and short-term moving averages are bearish.
- There is support near $170.
Current ETH Price Pattern
Since reaching the aforementioned high on July 20, Ethereum has been decreasing, trading inside a descending channel.
The decrease has been gradual.
At the time of writing, the ETH price was trading in the middle of the channel.
Let’s look at a longer-term view and see where will it go next.
A long-term view shows that the ETH price has been following an ascending support line since the beginning of February.
At the time of writing, it was trading slightly above this support line after touching it for the fourth time.
A look at the 10-, 20-day and 100-day moving averages (MA) gives a bearish outlook.
A bearish cross between the 10- and 20-day MAs transpired on July 7.
Since then, the ETH price has been facing very close resistance from the former.
This was especially evident in the period from July 19-22.
Additionally, the recent decrease took ETH below the 100-day MA.
The bearish cross between the 10- and 100-day MAs can be viewed as confirmation that ETH is in a downtrend.
A look at the weekly time-frame gives a similarly bearish outlook.
We can see that the massive bearish engulfing candle for the week of July 8-15 caused the ETH price to decrease below the 10-week MA.
It has now found support above the 20-week one.
While it has shown strength increasing from $191 to $235, the short- and medium-term analysis combined with the fact that the weekly moving averages look ready to make a bearish cross makes us believe that ETH will again drop to the support line.
Eventually, a break down seems likely.
If it does, one support area is outlined below:
The closest support area is found near $170.
If the price breaks down from the support line, it is likely to provide a reversal.
The Ethereum price is trading inside a descending channel.
According to our analysis, it will continue trading inside the channel until it reached the long-term ascending support line.
Eventually, we believe a breakdown is likely.
Do you think Ethereum will reach the ascending support line? 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 Shutterstock, TradingView.