Over the last 7 Days, Ethereum has clearly bounced three times off rising trendline support formed as a result of the most recent uptrend. This is a good sign that price levels will hold the uptrend and continue to rise throughout July.
Ethereum Price Analysis: Daily Chart
On the daily chart, we can clearly see the recent uptrend that has formed, stemming from the lows around $140 towards April. 50MA running just under the uptrend support line shows the strength of the uptrend. Volume has been descending since $282 was hit in May, however price levels have continued to rise to create new yearly highs above $360. Descending volume and ascending price action is typically a sign that bulls are well in control and there’s little to no selling momentum directly impacting the market.
In order to sustain further upside to surpass the current high at around $360, there will need to be a clear influx of new volume which seems to be lacking at the moment. RSI currently sits around 60.00 indicating a drastic move to the upside, or downside if the uptrend breaks are still on the cards as there’s plenty of room to move in each direction. Key support levels to look out for if the uptrend breaks are: $260, $226, 187, $165 (POC). These are the ideal levels to consider re-entering at or taking profit on shorts if you managed to catch the breakdown. Please remember the current trend is most definitely bullish.
ETHUSD 1-Hour Analysis:
On the 1 Hour chart, we can now clearly see the three support trendline tests over the last 7 Days. This leads me to believe the current uptrend is very strong and will take a lot of bearish selling pressure to break. Price action is clearly starting to turn up and forming a new short-term uptrend as a result of the prior correction as mentioned in my previous analysis on ETH. This is highlighted by the curve touching each interval high within the last few weeks.
Price levels could revisit trendline area around $295 and attempt another bounce to scare weak hands. Any price levels below this would be considered the breakdown zone where it’s advised to consider selling your position in anticipation of a move to the downside. Key resistance levels to look out for if ETH decides to continue upwards are: $324, $344, $365, $400.
A bullish 50MA/200EMA cross happened within the last 6 hours as a result of the most recent move from $291 to $313. This is another strong indication that bulls are still in control and are looking to keep the current uptrend intact.
Do you think Ethereum price will hold the current uptrend on the Daily chart for much longer? leave your thoughts down in the comments below!
Images via Shutterstock, Tradingview
