Ethereum price data analysis reveals that the currency continues to struggle against the US dollar as the price failed to maintain support over the three hundred dollars $300 mark. Now the Ethereum price has reached much closer to $260.
The ETH/USD pair broke down from an ascending channel. It also broke down from a longer-term ascending wedge. There is support near two hundred and sixty dollars ($260) to two hundred and thirty dollars ($230). Short-term moving averages are bearish. Long-term moving averages are bullish.
The price reached lows of two hundred and sixty ($260) on July 2 and started rising since then. The price rose above three hundred dollars ($300) mark till it reached three hundred and sixteen ($316) but failed to maintain supports at that level and shortly afterward fell back.
At the time of writing the crypto’s price is hovering between two hundred and sixty and two hundred and seventy-two dollars ($260 – $272). There is buying pressure there and a long lower wick was created at that point. Further below the support lies at $230
The moving averages are giving mixed signals as the long-term shows a bullish outlook, while the short-term MA gives a bearish outlook. However, the price is reaching the resistance of 10-day MAs.
Furthermore, there is a support area around two hundred and thirty dollars ($230) for the 100-day MA that gives it greater resistance and hopefully enough support to start a reversal as the price action looks like it will continue decreasing till that point.
However, it is not set in stone yet and the price may begin to rise from this point if the two hundred and sixty-five dollars ($265) support holds. This way the price action can connect back to the ascending wedge.
On the other hand, the more likely route that the price action will take is towards two hundred and thirty dollars ($230) from where it will start the reversal. Regardless, it all depends on the price action of Bitcoin as Ethereum mirrors Bitcoin’s price and if the latter’s price continues to decline the former will follow suit.
Just recently Bitcoin’s price fell by more than 10% due to one huge sell-out that may cause a chain reaction due to the fluctuation in price.