Ethereum (ETH) Price Analysis: Wedge Support Held, Another Resistance Test?
Ethereum has been trading inside a falling wedge pattern for quite some time as it formed lower highs and lower lows. Price just recently tested support and made another strong bounce, making its way close to the top again.
A bullish flag can be seen and this typically serves as a continuation signal. The mast of the flag spans $410 to $450 so the resulting breakout could be of the same height. However, price could still hit resistance at the wedge top around $460.
The 100 SMA is below the longer-term 200 SMA for now to signal that the path of least resistance is still to the downside. In other words, resistance is more likely to hold than to break.
Then again, the gap between the moving averages has narrowed enough to signal that a bullish crossover may be due while bearish momentum slows. Price has also moved past the moving averages as an early indication of bullish momentum.
RSI is still on the move down, though, so sellers might still have the upper hand. Stochastic appears to be headed north so Ethereum could follow suit. A break past the resistance could lead to an uptrend that’s the same size as the wedge formation.
Cryptocurrencies are off to a running start this brand new month and quarter as investor optimism is returning. Then again, this could be profit-taking from the previous month’s losses. Most of June was filled with regulatory jitters and a few exchange hacks, so it’s understandable that caution was strongly exercised.
As for Ethereum, there were a number of tokens that established their independence from this blockchain last month, including Tron. However the lack of follow-through on the launches has led some to think that Ethereum is still superior to these smaller ones.
Meanwhile, dollar price action could still carry a lot of impact on cryptocurrency direction as trade war jitters affect overall market sentiment.