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ETH Price Analysis – August 6
ETH has been consolidating within a sideways range for the last 2-3weeks and looks to finally break to the upside. The Ethereum price has escaped an asymmetric triangle and is expected to rise to $260 this week.
Resistance levels: $260, $265, $270
Support levels: $180, $175 $170
With the bitcoin revolution, Ethereum price action has formed a small uptrend as a result of the breakout above the 21-day moving average. This is an indication that there are predominantly buyers around market price and selling momentum has come to a halt. Looking at the daily chart, ETH/USD is initially supported by $180 and it is closely followed by $175. Once these support levels are cleared, the sell-off is likely to gain traction with the next focus on $170.
On the upside, the local resistance is created by psychological $260 and followed by the recent high of $265. This resistance level is likely to limit the recovery for the time being. However, once this is eliminated, the momentum should accelerate with the next focus on $270. The RSI is now in favour of the bulls, which is a good sign. If it remains above 50, we can expect ETH/USD to break above $230 and head towards $260.
Ethereum has clearly experienced difficulties, especially in the past two months, against Bitcoin. Ethereum recently broke under solid support at 0.020 BTC and continued to fall through subsequent support levels to 0.019 BTC and 0.018 BTC to reach its potential supports around 0.017 BTC and below. The arguments for bulls seem very serious right now.
However, if the bulls manage to power the market, we may soon find the price at $0.022 BTC, $0.023 BTC, and $0.024 BTC. Now, we can say the bulls seem to be re-entering into the market. The RSI is now crossing to the oversold level after the price has fallen towards the support levels.
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