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Price Analysis

Ethereum Prices Flat-lines Above $2k, ETH/USD Breakout on the Offing?

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Ethereum price prediction cryptotelegram

The Ethereum price is compressed with a bias to the downside reading from price action in the daily chart.

While there is optimism and flashes of strength from the last few trading days, buyers need strong confirmation above critical resistance levels and a conclusive move away from the middle BB.

Still, sellers have the upper hand, but the trend could shift if there is an injection of demand as buyers flow.

Ethereum Market Performance

As per candlestick arrangement in the daily chart, ETH/USD is moving within a $400 zone with caps at $2k—psychological support—and $2.4k—a minor resistance level, above the middle BB—a sign of strength.

Ethereum Price Daily Chart for July 12

Despite the close above of last week, bulls’ compression and failure of follow-through could signal weakness in the short term.

Nonetheless, fundamental factors may stimulate demand, especially if ETH/USD stand put, absorbing sell pressure and unwinding losses of July 8.

If anything, a satisfactory close above $2.4k could anchor the next wave of demand–more so if there is an uptick in trading volumes.

In that case, the immediate target for ETH would be $2.9k in the short-term as ETH/USD prices bottom-up from May 2021 lows, syncing with gains of Q1 2021 ahead of EIP-1559 and London Upgrade.

An explosion of ETH/USD Trading Volumes

Already, there is an uptick in participation reading from the development in the 5 Min chart of ETH/USD.

As per the bot’s reading, traders are already flowing in and posting block traders resulting in deviation of trading volume, a net positive, especially if ETH/USD prices inch higher.

Path to $1.3k or $4k?

On Trading View, CryptoPatel remains cautious. He notes that while ETH/USD prices are steady—even bullish, buyers are currently clipped, trading within a bearish breakout pattern in the daily chart.

CryptoPatel--Ethereum

The analyst further identifies the zone between $1.95k and $2k as critical support. On the upside, a close above $2.3k and breakout above the resistance trend line could indicate the presence of buyers and possibly trend continuation towards $4k.

The formation of the three-bar bearish reversal pattern and the climactic sell-off of July 8 effectively nullified bullish attempts, capping ETH below $2.4k. Therefore, there must be a conclusive reversal and cancellation of this price pattern in the short term for buyers to flow back.

On the flip side, a close below $2k pushes ETH/USD within May and June 2021 bear trend. This could possibly open up the coin to $1.3k in a retest of 2018 highs.

Ethereum will be Bullish in July, ETH/USD back to $3k

Meanwhile, IWealthCommunity, on Trading View, is positive July will be a bullish month for Ethereum.

IWealthCommunity--Ethereum

For this reason, he’s already positioning his bets at $3k on the upside.

The continuation—and rapidity–of this upswing largely depend on the strength of the breakout pattern above the descending wedge.

The breakout, reading from the ETH/USD daily chart, also means the 20-day moving average acts as a reliable springboard. This is a relief for traders after profound losses of the last few trading days.

A super-cycle to $20k?

At least this is the position of another trader who is “keeping it” simple and aiming at $20k.

SHUDAHCUDAH--Ethereum

The analyst says ETH prices pumped 200 percent from $1.3k to top $4k.

Taking this lead, the contraction of the last few weeks is the basis for another jump towards $20k since. In his view, a 200 percent rally doesn’t qualify as a bull run.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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