In this topic we are going to talk about Ethereum ETH. Over the years cryptocurrency has shown a great result and all those people woh are holding it since a long time they are still in profit. Hence couple of last years were not good for the cryptocurrency and we saw a big downfall in cryptocurrency prices. Which is still a setback for all those investors and trader’s who were holding the cryptocurrencies since last 2 years.
We have to always keep in mind that a market cycle structure is not related to a bull trend only. Uptrend, downtrend, sideways all these are the main elements of market structure. On the other hand big market players are always ready to play against th retailer’s that’s why when something is very costly we all start to buy that thing on top and the big player just sell all their goods at high price. So the concept is always same that buy low sell high and that is what big players like to do in any type of financial market. Let’s talk about the Ethereum Chart Study.
Ethereum Technical Analysis: June, July 2020
Ethereum has a very good boom today and there is a more than 10% positive movement in the price of Ethereum Cryptocurrency today and it got surged finally. Yes guys you heard right 10% in one day, which is not a small thing of movement. So first of all we would like to talk about important support area for now. According to the weekly chart of Ethereum the range of price $77 to $85 has made a very good support for the cryptocurrency ethereum. The good thing about the Ethereum is that its holding the support levels now, its not dipping more and building a solid Double Bottom Pattern for now. If you are a new to Double Bottom Pattern we would like to tell you that this is an confirmation of uptrend or market reversal. Doule bottom means two strong support zones at a single line. This type of pattern mostly form at the bottom of the market or in the middle of trend.
Ethereum had made a very strong support in the year of 2018 December which was around $81 and since then market is continuously trading in a range. Means buyers and sellers are equal in the market. On the other hand if you see the 200 Day moving average, ETH price is just above of it now which is a good sign of the bull run but in past everytime whenever its crossing the 200 Moving Average from downside then the price once again coming back down which indicating that its a sideways market pattern and 200 Day Moving Average is showing it clearly. But still we have some important resistance areas upside those are around $290, and $364. This is really good to see that we had a support from the last strong support area which was made in 2018. Lets have a look on our strong resistance area
As you can see above in the chart, we are still in ranging market and we are still in a phase where those buyers have to retest those sellers upside. And if we see that those sellers are not that much strong later when our market price is over there near those important resistance zones then we believe that more positivity would happen in the price of ethereum and later that Resistance will act as an support for us. The another thing is that we are still in a strong downtrend since January 2018 and this is just a recovery phase for the price of ethereum. By the way it would be interesting to watch out that how market will play when current ethereum price would hit those important resistance area’s and the another interesting thing would be the 200 Day Moving Average play, a good support of 200 day moving average may shift the Ethereum price more higher.We would like to make another article whenever we are near of that resistance area.
- Ethereum price is in a range for now the important support zone range would be $77 to $85. If prices comes back to this range we can hope that price will go up once again.
- The strong resistance area’s would be $290 and $364. Price may come back down if we didn’t got a solid breakout up there. This is a seller territory means a sell can happen on those price’s once again.
- Because Ethereum is showing range or sideways pattern in weekly chart which is related to long term analysis and result so it can take few more months to break the range.
- A strong support of 200 Day Moving Average indicator as well may move the prices up. 200 Day Moving Average is a very powerful trend following indicator so weekly chart signal can be a sign of long term trend.
- Market has almost made a very powerful double bottom pattern in weekly chart, which is a very good sign for all those traders who are looking for a positive movement in the price of Ethereum Cryptocurrency.
There is no doubt in it that Cryptocurrencies prices are down at the moment, and we are not so far when we will able to see a long term uptrend in the market of cryptocurrency. Time will come when all the big market players would like to buy at the cheap price which is the bottom of the price. Or we can say a price which satisfy the big market players wish. So whenever they will start to invest in crypto, it gonna be surge for sure. But we believe that still cryptocurrencies need few more year’s to establish. Its still a market which is unkown to so many, but couple of more year’s would make it an one of the biggest financial market in the world.
Furthermore we always try to concentrate on support and resistance area’s during making our analysis and try to provide a nice material of market buyers and sellers to our reader’s where we study the psychology of Big market players.