The month of July will see a new trend in the price of Ethereum. That is because of the pattern on Ethereum’s chart.
Check the price chart in this chart. Admittedly, the red lines are annotated and not straight, but the pattern is clear. In traditional chart analysis this is known as a “bullish flag”. Investopedia writes that “bullish flag formations are found in stocks with strong uptrends. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a stock and the flag results from a period of consolidation.”
It is normal after each huge rally, whether in traditional stocks or in cryptocurrencies, that a period of retracement and consolidation takes place. As long as prices stay above a certain level, it remains bullish in the bigger scheme of things.
We identified $200 as the base price for Ethereum’s bull market. That is not exactly the same price level as the one found in the bullish flag, but the $200 is the long term secular bull market price point that we are looking at, while the bullish flag on the chart is more tactical in nature.
It may be true that there was another hack on one of the Ethereum exchanges, as reported by Fortune. News items like this are not moving prices, at least not with a hack on a small scale. Stated differently, this type of newshas no impact on the bullish flag we noted on the chart.
For now, benefit of the doubt to Ethereum bulls. The probability of a bullish breakout in July is high according to us.