As of July 2017, our Team decided to start providing a snapshot of the price action of Ethereum on a weekly, monthly and quarterly basis. The objective is to give a quick snapshot of the fast-paced performance of Ethereum and keep our readers up to date.
The month of June has been eventful for Ethereum as we have witnessed a couple crashes. This article written by InvestingHaven’s research team explains the reasons behind this volatility so we won’t cover that information in this article. Instead we will look at the price action for the last 60 days to put our readers into perspective then zoom into the last 2 weeks.
As mentioned, June was a volatile month for Ethereum with 2 major price crashes. Since then, we have seen the price recover pretty fast but remained range bound for the rest of the month. The first week of July we saw the range getting tighter and will soon either Breakdown our Breakout of the bullish flag that we can see on the monthly chart.
Monthly and Weekly Snapshots
The 60 days chart below shows a clear Bullish flag on the Ethereum price chart. Even with the flash crashes mentioned before, buyers showed up rather quickly and pushed the price back into the bullish flag. The Blue line represents the last significant top from May and we foresee that level as being a first support. If that support fails, the next two levels will likely be the $200 and ultimately the $150. If there is no break to the upside of the flag, we might also see the price bounce between $200 and $240 before finding a direction. You can find the details of how these levels are crucial for Ethereum’s price in this article we published earlier this week..
Zooming into the Monthly chart now – This view shows clearly that we will know very soon if we will see a breakout to the upside for the price of Ethereum or if it will soon test the next 2 major support levels (Green lines).
The chart below represents Ethereum’s price during the last 15 days. We annotated in blue a new trend line developing within the bull flag. We believe this trend line is going to be important in the next days for if it acts as a support, we might see a breakout to the upside provided there is volume. If it becomes a resistance, it will quickly send the price outside the bullish flag and to the next support level. Volume will be key for Ethereum’s next move.
Ethereum’s price range is getting tighter as we close the first week of the month of July leading us to think that we should soon see either a Breakdown our Breakout from the bullish flag on the monthly chart.
The key support levels to watch are $240 & $200 and in case of extreme volatility $150. Below these levels, the Breakdown will likely be confirmed and the Bearish momentum will strengthen.