Key highlights:

  • Ethereum is down a sharp 11.5% this week after breaking beneath $2,000 and reaching $1,860
  • The coin is now trading inside a falling wedge pattern, which is usually bullish on the breakout
  • Against Bitcoin itself, Ethereum broke the 100-day MA as it battles around ₿0.06
Ethereum price $1,900
Key ETH resistance levels $1,990, $2,000, $2,060, $2,075, $2,200
Key ETH support levels $1,825, $1,800, $1,715, $1,650, $1,600

*Price at the time of publication


Ethereum is down a very sharp 11.5% this week as the cryptocurrency breaks beneath $2,000 to hit $1,860. It broke back beneath the 200-day MA level on Tuesday as it plummeted beneath $2,000. 

The coin is now trading inside a falling wedge pattern which is typically bullish when they break toward the upside. All eyes are resting on the next major support at $1,800.

Despite the substantial price drops this week, it seems that whales are pretty bullish on Ethereum. The top-10 largest ETH addresses now actually hold almost 20.58% of the overall Ethereum supply, according to data from Santiment:

The last time the top-10 ETH addresses held so much of the supply was back in May 2017, when they held just 20.54%. The confidence in Ethereum by whales is quite staggering. However, when we look at the fact that the network is about to undergo major upgrades on the road to ETH 2.0 by the end of the year, it is no surprise that whales are starting to accumulate heavily. 

Additionally, it seems that the retail investors are also taking a long-term bullish stance on Ethereum as the total supply on exchanges dropped under 18% this week, reaching the lowest level of liquidity on exchanges since November 2018:

Typically, when a coin leaves the exchange, it signals that the owner is planning on holding the asset for a longer period, and they are not available to immediately sell on the open market.

Despite the promising on-chain metrics, this week’s price drop has caused the total market cap value for Ethereum to fall beneath $220 billion as it sits at $217 billion.

Let us continue to take a look at the markets and see where they might be heading.

Ethereum price analysis

What has been going on?

Looking at the daily chart above, we can clearly see the troubling week Ethereum witnessed. The coin was pushing higher at the start of July but was unable to break resistance at $2,365, provided by a bearish .236 Fib Retracement level. 

From there, ETH dropped lower but managed to maintain support at $2,075, provided by a .786 Fib Retracement.

On Monday, Ethereum penetrated the $2,075 support and dropped into the 200-day MA. It fell beneath the 200-day MA and the $2,000 support on Tuesday as it started to plummet. 

Since breaking $2,000, Ethereum has cleared a clear falling wedge pattern. A falling wedge is typically bullish and usually breaks toward the upside. However, with the increased selling pressure from BTC, it would not be surprising to see ETH breaking the downside of this wedge.

Ethereum price short-term prediction: Neutral

ETH still remains neutral, but a break beneath $1,800 would turn it bearish in the short term. It would need to rise beyond the July resistance at $2,365 to start to turn bullish. A clear break above $2,600 would provide the framework for a longer bullish run.

Looking ahead, the first strong support lies at $1,800. The support is provided by a .886 Fib Retracement and the lower angle of the falling wedge. It is also the low-day closing price for July.

Beneath $1,800, support lies at $1,715, $1,650, $1,600, and $1,510 (March 2020 lows).

Where is the resistance toward the upside?

On the other side, the first resistance lies at the upper angle of the falling wedge, around $1,950. This is followed by $2,000, $2,075 (200-day MA), $2,080 (20-day MA0, and $2,200.

Additional resistance lies at $2,290 and $2,365 (bearish .236 Fib Retracement). 

ETH/BTC price analysis

What has been going on?

Ethereum is also struggling against BTC as it falls beneath ₿0.06 this week. It has established support at around ₿0.058, provided by a long-term rising trend line that dates back to April. The cryptocurrency failed to break resistance at ₿0.069 (bearish .618 Fib) at the start of the month and has been in a consistent downtrend ever since.

Today’s price fall also put ETH beneath the 100-day MA. 

Ethereum price short-term prediction: Neutral

ETH remains neutral until it breaks beneath the June lows at around ₿0.055, at which point it would turn bearish. On the other side, to turn bullish, ETH would need to clear the July resistance at around ₿0.069 (bearish .618 Fib Retracement).

Looking ahead, the first support lies at the rising trend line. This is followed by ₿0.0585, July lows. Beneath the July lows, support lies at ₿0.056 (.5 Fib Retracement), ₿0.056, and ₿0.055- the June lows.

If the bears break beneath the June lows, additional support is expected at ₿0.0534 (downside 1.618 Fib Extension), ₿0.0517 (downside 1.618 Fib Extension – blue), and ₿0.05 (.618 Fib Retracement).

Where is the resistance toward the upside?

On the other side, the first resistance lies at ₿0.06 (100-day MA). This is followed by ₿0.062 (20-day MA), ₿0.064, ₿0.0648 (50-day MA), ₿0.0663 (bearish .5 Fib), and ₿0.069 (bearish .618 Fib & July resistance).

Keep up to date with the latest ETH price predictions here.

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