On July 15, 2019, the Ethereum price reached a high of ₿0.024. A decrease ensued shortly after. The next day, the ETH price made lows of ₿0.020. Since then, it has been increasing — trading inside a range between ₿0.020 and ₿0.023.
Will volatility return to the Ethereum price? Keep reading below in order to find out.
Ethereum Price: Trends and Highlights for July 24
- ETH/BTC is trading inside a horizontal channel.
- It is trading inside a long-term descending channel.
- There is support at ₿0.020 and ₿0.008.
- A bullish divergence has developed in the RSI.
- There is resistance at ₿0.0225 and ₿0.0235
ETH Price In A Horizontal Channel
A closer look at the price shows that ETH has been trading inside a horizontal channel since July 17.
At the time of writing, it was trading in the middle of the channel.
Since ETH has been trading inside the channel for a relatively short period of time, we are going to take a look at a longer-term view in order to see how well this movement aligns with previous trends.
ETH Price: Long-Term
A look at the daily chart shows that ETH has been trading inside a descending channel since January 5.
Both the resistance and support lines have been touched four times, confirming their validity.
At the time of writing, ETH was trading right on the support line of the channel.
It has been trading close to the support line in the absence of notable fluctuations for the past nine days.
Going back further, we can see that this support line coincides with a minor support area.
The support area is found near ₿0.020.
A breakdown below this area could cause a rapid price decrease, likely taking it to ₿0.008, the level at which the 2017 upward move began.
How likely is that to happen?
Technical Indicators
The Ethereum price is analyzed at daily intervals alongside the RSI (first graph) and the 10- & 20-day moving averages (second graph)
A look at the RSI gives bullish implications and suggests that a breakdown is unlikely.
A bullish divergence has been developing since June 26.
The divergence is not present in the MACD nor in longer-term time-frames.
However, it is quite significant.
Additionally, moving averages suggest that the price may be in the preliminary stages of an upward move
While it struggled to move above the 10-day MA in the period between July 15 – 22, it was successful in doing so on July 23.
At the current time, it looks as if it is trying to find support above it.
If it does, it will be another sign suggesting that it will soon begin an uptrend.
If it does, where will it find resistance?
Possible Reversal
One minor and one major resistance areas are outlined below.
The minor resistance area is found at ₿0.0225.
There is more significant resistance at ₿0.0235.
We believe the ETH price will break out of the short-term horizontal channel.
If the breakout has significant strength, it is likely that the Ethereum price will eventually reach the major resistance area.
Summary
The Ethereum price is trading inside a descending channel in a minor support area.
According to our analysis, it is likely to initiate an upward move and head towards one of the resistance areas outlined above.