Ethereum is dropping visibly to the downside, continuing its abrupt plunge from July highs of $2,411. Despite another weekly loss, the overall slide in cryptocurrencies is not decelerating although with some in positive. Globally, the market continues to trade mixed and seems to lack strength. It has been a difficult month for Ether, the currency of the Ethereum network. ETH continues to oscillate around $2,000 and needs to sustain above $2,500 to keep alive the chances of seeing yearly highs on the upside. ETH/USD has bounced back from $1,850 daily lows but has limited upside from here up to $2,000-$2,300 (moving average 50) region from where it can see a sharp corrective fall. However, the ETH/USD pair could outperform selling pressure and break immediate resistances. In the long-term perspective, ETH continues to indicate bullishness as Netflow of $Ethereum supply on exchanges stays deeply negative. According to Cryptoquant, Ethereum reserve on exchanges is on the decline, indicating that there isn’t much selling pressure in the market.
Key Levels
Resistance Levels: $2,500, $2,300, $2,000
Support Levels: $1,700, $1,500, $1,300
ETH/USD Daily ChartThe ETH/USD pair reached a top in May when it reached an all-time high of $4,384. Since then, the pair has been falling, reaching a year-to-date low of $1,700 in June. The pair’s price is below the moving averages (MA 50 and MA 200) while its RSI is below the midlines of 50. The pair is likely to continue falling if it remains below the MAs and will likely test the support of $1,500.
On the contrary, a bullish impulse may evolve above the $2,000 psychological zone and form a new potential base for the next run. The rebound into the next bullish wave may show up soon due to a longer consolidation period. This may cause an aggressive shift back to bullish mode up from lows with a convergence of the MAs as a scenario for a key change in market trends.
ETH/USD 4-Hour ChartMany traders and investors are anticipating the formation of a bottom on ETH/USD. Short corrective movement seen in price could be temporary and hold for the next few sessions before again resuming the broader trend. The ETH/USD is likely to test the $1,700 zone before a rebound strong enough to flip the $2,000 zone and moving averages (MA 50 and MA 200) takes place.
Although the price looks vulnerable to break towards the $1,800-$1,700 range, It will have to be seen if it can rise past the $2,000-$2,300 resistance zone from here or not this week. A breakout on either side of this range will decide whether the no.2 crypto can move up to $2,500-$3,000 or fall to $1,500-$1,000 from here. While the price holds beneath the MA 50 and MA 200 resistances, the ETH range can continue to hold for some more time.
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