On July 13, 2019, the Ethereum price reached a high of ₿0.024. A decrease began the next day. By July 16, ETH had reached a low of ₿0.020. Since then, it has been increasing.
How long will this upward move continue for ETH? Keep reading below in order to find out.
Ethereum Price: Trends and Highlights for July 18
- ETH/BTC is following an ascending support line.
- There is resistance at ₿0.0223.
- The price is trading inside a long-term descending channel.
- It has possibly created a morning star reversal pattern.
- Short-term moving averages have made a bullish cross.
Ascending ETH Price Support
Since reaching a low of ₿0.020 on July 16, ETH has been increasing, following the ascending support line outlined below.
There is one resistance area near ₿0.0223, created by previous support on July 14.
Ethereum has reached this area twice but has been immediately pushed down.
At the time of writing, it was attempting to break out above it. Will it be successful?
Not according to the RSI.
While the Ethereum price has reached the resistance area twice, the RSI has generated lower values.
This is known as bearish divergence and often precedes price decreases.
The divergence is significant and occurring in an important resistance area, increasing its validity.
However, it is only present in short-term RSI readings.
Therefore, it is possible that the ETH price will break down from the support line before creating another pattern which may be successful in breaking out of the resistance area.
Let’s take a look at a longer-term time-frame to see if that is likely.
Reversal Pattern
A look at the daily time-frame shows that the ETH price has been trading inside a descending channel since the beginning of 2019.
At the time of writing, it was trading right on the support line.
Also, a closer look shows that it is possibly making a morning star pattern.
When found in a downtrend, this pattern often indicates a reversal
The morning star pattern consists of a:
- Massive bearish candle
- Bullish doji
- Bullish candle that closes above the opening of the first one.
While the third candle did not close above the opening of the first candle, today’s one might do so.
Will a reversal begin soon?
Technical Indicators
The Ethereum price is analyzed at daily intervals alongside the RSI in the first graph and at four-hour intervals alongside the 10- and 20-period moving averages in the second.
A look at the RSI supports the initiation of an upward move.
It has been generating bullish divergence since June 25.
The divergence is quite significant and occurring in the daily time-frame, which can be considered long-term.
Additionally, in shorter-term time-frames, the momentum has already turned, as the moving averages have made a bullish cross.
The 10- and 20-period MAs made a bullish cross on July 18. The Ethereum price is trading above both of them.
The analysis of these technical indicators supports further price increases towards the resistance line of the channel.
However, as evidenced in the first section, a small decrease is likely before the price continues its upward move.
Finally, before it gets to the resistance line, there are several resistance areas it has to clear first.
Reversal Areas
Two resistance areas are outlined below:
The first one is found near ₿0.0223, where the ETH price is currently trading.
If it breaks out of this one, the next one can be found near ₿0.0235.
According to our analysis, it is likely that the price eventually reaches this area.
Summary
The Ethereum price has been increasing since July 16. However, the increase stalled once the price reached the resistance line.
According to our analysis, the ETH price is likely to eventually break out from this resistance area.