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Ethereum price analysis: ETH price is gearing to attempt breakout

ethereum ethsimple porfolio viewer

Ethereum analysis shows that the queen of cryptocurrency Ethereum (ETH) has been trading in an uncertain pattern for the past few weeks, and the price action has increased volatility significantly.

The price reached lows of one hundred and ninety-one ($191) on July 17 then rose till two hundred and thirty-five dollars ($235). However, the price fell again but higher than last time then rose once again to two hundred and forty dollars ($240) on August 6.

Across the short-term charts with two-hour time frames, the price action has been trading inside an ascending triangle since bottoming out on July 17.

Ethereum price analysis: ETH price is gearing to attempt breakout 1Ethereum price chart by Trading View

This is a bullish pattern that makes a breakout towards higher price targets more probable.

However, the price started to decline after meeting the resistance on August 6, creating a long upper wick. The Ethereum price then found support at two hundred and twenty-three dollars ($223) where the price has consolidated ever since.

Ethereum price analysis: ETH price is gearing to attempt breakout 2

Ethereum price chart by Trading View

Across the hourly frames, we can see that the ETH/USD pair has been moving in a descending wedge pattern. Fortunately, this pattern is also considered a bullish pattern making bullish breakouts more probable.

Ethereum price analysis: ETH price is gearing to attempt breakout 3

Ethereum price chart by Trading View

Currently, the price action is moving close to the resistance line of the wedge. Although the pattern shows potential for downward movement, the relative strength index (RSI) had a bullish divergence showing support for bulls.

Ethereum price analysis: ETH price is gearing to attempt breakout 4

Ethereum price chart by Trading View

However, the divergence is minor and only visible on charts with frames of two-hours and below.

The price is expected to drop below to the support of the wedge then sharply bounce back.

Ethereum price analysis: ETH price is gearing to attempt breakout 5

Ethereum price chart by Trading View

Furthermore, if the price decreases to the support of the triangle, the bullish rally will have more strength. Moreover, this would allow the RSI to bounce on the bullish divergence trend line before its upward movement.

Ethereum price is trading inside a descending wedge and is expected to decline before rising sharply to two hundred and thirty-five dollars ($235) mark.

Saad B. Murtaza

Saad B. Murtaza

Journalist, Writer, Editor, Researcher, and Strategist with over 10 years of experience in the digital, print and public relations industries, Saad has been working with the mantra, Creativity, Quality and Punctuality. In his waning years promises to build a self-sustaining institute that provides free education. Carrying a diverse portfolio he has studied and written on topics related to cyber crimes, scams, blockchain, and cryptocurrencies.

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