On August 9, 2019, the Ethereum price reached a low of ₿0.0175. An upward move began. The ETH price reached a high of ₿0.0197 on August 14. It has been decreasing since then.
At the time of writing, the ETH price was trading near ₿0.0182.
Will Ethereum initiate a reversal or do further decreases await? Continue reading if you are interested in finding out.
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It is found at ₿0.0183, a level where the Ethereum price is currently trading.
The two previous times it reached this area, (August 14-15) it began upward moves of varying magnitudes.
This idea is supported by a look at the hourly RSI.
It has generated bullish divergence over the past 24 hours.
However, the divergence is not very significant and is not present in longer-term time-frames.
Therefore, any upward moves resulting from it will most likely be temporary.
Let’s take a look at the daily time-frame to see how the recent price movement fits into a larger picture.
At the time of writing, it was trading in the middle of the channel.
Additionally, there is a support area between ₿0.016 and ₿0.017.
If the Ethereum price were to decrease at the rate predicted by the channel, it would reach this area and the descending support line on August 20-25.
A look at moving averages supports this possibility.
A bearish cross between the 10- and 20-day MAs occurred on August 4.
The ETH price has been trading below both since then.
Yesterday, the price reached the 20-day MA before decreasing.
It is currently facing very close resistance from the 10-day MA.
Additionally, the volume was significantly higher during the bearish candlestick on August 14.
This makes us believe that ETH will decrease until it reaches the support area at ₿0.016 – ₿0.017.
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According to our analysis, it is likely to continue decreasing until it reaches the support area outlined above.
A short-term increase towards ₿0.019 could occur before the Ethereum price resumes its downward movement.
Do you think ETH will reach the support area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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