Ethereum Analysis – Time for correction is coming?

Regularly find technical analyzes of the price of Bitcoin (BTC) and other emblematic cryptocurrencies such as Ethereum (ETH). But also videos to introduce you to certain technical indicators, tips or more fundamental approaches. All this with the objective of remaining clear and accessible to allow you to learn the basics of trading. And to benefit from in-depth analyzes carried out by experienced traders.

Full video of this Coin Trading analysis at the end of the article.

This analysis is going to be much shorter than the one from last week, because not much has happened since in the cryptocurrency market. It will therefore be exclusively about Bitcoin and Ethereum, the latter showing signs of correction that should not be overlooked. For more details, the previous technical analysis may be interesting to consult again today, in order to complete the current situation, with weekly and monthly points for BTC and ETH.

Bitcoin – Facing resistance at $25,000

In daily time units, Bitcoin is still in an uptrend initiated about 2 months ago. With a low point reached on June 18 at around $17,500. And following that, quite a bit of stagnation over the period of June and July, before a rise that remains weaker than that of Ethereum in the current state of things.

A very short-term bullish scenario that follows a trend line (green) on which BTC has already come to bounce on several occasions. This to the point of being at the gates of the resistance of around $25,000. for a few days. With a balance sheet which remains identical to last week, that is to say on the rise until proven otherwise. This even if the support is higher than at this time. Because a drop below $21,000 could still invalidate this trend, which remains fragile.

The first bearish signal would be a breakout of the $22,500 level on which it nevertheless seems wise to place a stop loss. Because this would imply both a break of the current support, but also of the trend line that appeared since last June. While on the rise, we will have to wait for a breakout of the $25,000 level to get a new buy signal. And this while the market seems to be running out of steam at the moment on this resistance. With the prospect of a period of stagnation, even correction in order to absorb the recent rise.

Ethereum – Time for the correction is coming?

Same case for Ethereum in daily time unit. With a very clear short-term bullish trend that benefits from more amplitude than for Bitcoin. This follows a low point for ETH hit on June 18, around $880. Following this, a period of consolidation set in until mid-July before triggering a significant rise. The latter currently stopped at the resistance level of $2000.

Ethereum - Time for the correction is coming?

The price of ETH is currently correcting slightly, following the strong rise of the past few weeks. With a price almost multiplied by 3 over this period alone and at +50% since the breakout from the top of its last range. This makes it possible to raise the level of invalidation initially located at $1400 and to place it at around $1700. A new support for this range whose break from below would invalidate the current uptrend. But, conversely, an upward crossing (above $2000) would give a new buy signal and a confirmed return to the upside. With the best possible scenario, a simultaneous double signal on ETH and BTC.

The period of which seems to be at stagnation, or even the implementation of a slight correction. With an ETH price that can still lose up to -10% without breaking its new resistance. And without invalidating the upward trend registered in the short term.

TOTAL2 – Waiting for a breakout from the top

Finally, the last graph of this technical analysis is the TOTAL2 of the cryptocurrency market, without taking Bitcoin into account. The latter essentially composed of ETH and therefore very similar to the current uptrend. HASwith a level of resistance that has become support and a new course to cross on the rise already tested several times. But for that we will have to wait for a strong bullish impulse candle to validate this scenario.

Because at present, momentum looks more like consolidation over the next few days at a minimum. And, just like for Bitcoin and Ethereum, only a significant movement validated in daily time units will confirm the current upward trend. All of this will be covered in next week’s technical analysis…

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