Welcome to our Ethereum Market Analysis for August! If you're curious about the state of the Ethereum market and eager to anticipate its potential movements, you're in the right place.
In this article, we'll delve into the current trends within the Ethereum ecosystem, providing you with valuable insights to navigate this dynamic cryptocurrency landscape.
Ethereum Price Analysis: Weekly Timeframe
Shifting our focus to the weekly timeframe for Ethereum, recent developments reveal an intriguing picture. Ethereum has just completed a retest of the double top neckline, which was initially breached in May 2022.
Interestingly, Ethereum is currently shaping a rising wedge pattern on the weekly timeframe. This pattern is recognized as a bearish continuation signal. If the wedge eventually breaks, it could result in Ethereum falling to the one year low around $922. But for this to happen, the rising wedge must first be broken.
Let’s zoom in to the daily timeframe to have a clearer picture of what the price action is saying.
ETH Price Analysis: Daily Timeframe
Zooming in on the daily timeframe, Ethereum's current situation becomes clearer. The price is currently finding support within a secondary zone around the $1659 mark, as indicated by the red line. This support level is instrumental in preventing ETH from descending to the next support area at approximately $1400.
Interestingly, recent market activity has confined Ethereum's price within a relatively narrow range for the past two months, signaling a period of consolidation. Traders are eagerly anticipating a significant catalyst that could potentially trigger a breakout from this range. The big question remains: Will Ethereum's price move upwards or downwards? Only time will provide the answer.
What’s Next For Ethereum Price? ETH Price Prediction
In the Ethereum market, two potential trade scenarios are emerging. Firstly, if the current support level around $1600 proves resilient, there's a possibility that Ethereum's price will surge upwards, possibly even establishing a new high.
For those considering a long trade, it's advisable to wait for a bullish confirmation signal within this zone. A closer examination on a lower timeframe such as H4 might be helpful in spotting entry confirmations like bullish candlestick formations, an upward crossover of Exponential Moving Averages (EMA), or a double bottom pattern.
Alternatively, if the $1600 breaks (following the yellow arrows), you can wait for a retest of the broken support and watch out for bearish candlestick formation or bearish continuation chart patterns like rising flag, etc before you sell.
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This article is intended for educational purposes and is not financial advice.