Ethereum price is still trying to clear the $325 level. That is to be expected given the importance of this level of resistance that was identified as a level investors should keep an eye on in August.
When looking at Ethereum price action this week, the price has been range bound for almost a week now. The lowest it dropped was to reach an intraday low of $269 and is currently trading at $287 as we write this article.
At this point, if the price doesn’t break the $325 level to the upside we might see a back test of the $250 support and if this support doesn’t hold, the next stop will likely be at $200. The $200 level is a very strong support for Ethereum’s price.
So far, it looks more like a healthy consolidation after the solid gains during the last 2 weeks. You can also notice how higher lows are forming on Ethereum price chart as seen in the chart above. All in all, we believe the price is still in a bullish zone, but profit taking and relatively lower volume is keeping the price from breaking the $325 resistance level.
Bitcoin had a spectacular week and its price reached new highs of almost $4500. Bitcoin’s price is currently retracing as well mostly from profit takers locking in their profits. It is possible some of those funds might end up moving into Ethereum. One thing is for sure, volume will be key for Ethereum to break the current resistance and start a new leg up. Until then, we might see the price trade in the current range for a little while.