Ethereum Price Analysis: ETH Forming a Rising Wedge – is $2000 Retest Incoming?
ETH/USD – Ether Forms Short Term Rising Wedge
Key Support Levels: $2200, $2100, $2035 – $2000.
Key Resistance Levels: $2340, $2400, $2440.
Ethereum has seen a promising start to July as it breaks above the 20-day MA and heads above $2200. The cryptocurrency now faces resistance at $2340, provided by a .236 Fib Retracement, and is trading above a rising trend line.
The rising trend line also forms the lower angle of a rising wedge formation on the 4-hour chart. Typically, rising wedges are bearish patterns, and it could signal a potential retest of the July lows at around $2,000.
ETH-USD Short Term Price Prediction
Looking ahead, the first strong resistance lies at $2340 (bearish .236 Fib). This is followed by $2400 (50-day MA), $2440 (1.272 Fib Extension & upper angle of rising wedge), and $2550 (100-day MA).
On the other side, the first support lies at $2200 (lower angle of wedge). This is followed by $2100 (20-day MA), and then between $2035 (Feb 2021 highs) & $2000 (200-day MA).
The daily RSI continues to battle the midline, indicating indecision within the market. In addition, the 4-hour RSI is starting to show potential bearish divergence hints and could signal a breakdown of the wedge.
ETH/BTC – Bulls Break 50-day MA.
Key Support Levels: 0.066 BTC, 0.063 BTC, 0.061 BTC.
Key Resistance Levels: 0.068 BTC, 0.0689 BTC, 0.07 BTC.
Etheruem managed to push above the 50-day MA at 0.0659 BTC against bitcoin. If today’s candle can close above the 50-day MA, it would be the first closing candle above it since June 12th.
On the short-term chart, ETH is also forming the same rising wedge pattern against BTC. This is a potentially bearish signal that could see it heading back to 0.06 BTC if it breaks.
ETH-BTC Short Term Price Prediction
Moving forward, if the bulls can break above the wedge, the first resistance lies at 0.068 BTC. This is followed by 0.0689 BTC (bearish .618 Fib), 0.07 BTC, and 0.072 BTC.
On the other side, the first support lies at 0.066 BTC (lower angle of wedge & 50-day MA). This is followed by 0.063 BTC and 0.061 BTC (20-day MA).
The daily RSI is showing slightly bullish momentum as it sits above the midline. However, the 4-hour RSI shows a clear bearish divergence between momentum and price that could see the market breaking the lower angle of the wedge.
AUD/USD Price Analysis: Defends 200-HMA breakout inside rising wedge
Given the quote’s sustained trading above 200-HMA and bullish MACD signals, AUD/USD prices are likely to defy the bearish chart pattern, with an upside break of the immediate resistance line near 0.7505.
AUD/USD holds onto the day-start gains around 0.7500, up 0.26% intraday, as European traders brace for Tuesday’s work. In doing so, the Aussie pair stays above 200-HMA while staying inside the bearish chart pattern, rising wedge, on the hourly play.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Rough Q2 for BTC to headline Tesla earnings, while ETH may drop 30%
]
Bitcoin price momentum continues to fade on the intra-day charts, projecting a break to the downside at any time.
Ethereum price is now entangled with the tactically important 50-day simple moving average (SMA).
XRP price trades with no intention, forms new channel along $0.65 with major technical obstacles above.
Bitcoin price has been unable to fulfill expectations of a meaningful rally after triggering a multi-month head-and-shoulders pattern. Meanwhile, Ethereum price shows exhaustion and may be near a significant decline. XRP price remains unchanged, offering few clues as to directional intentions.
Tesla to feel the effects of a challenging quarter for Bitcoin
Bitcoin price closed the 2Q down over 40%, marking the worst quarter since 4Q2018. The impact of the substantial loss will extend beyond the retail and institutional investors, hitting publicly traded companies like Tesla, which took on a $1.5 billion Bitcoin position earlier this year.
Tesla announced their initial investment in Bitcoin in February when the cryptocurrency was trading in the range of $32,000-$33,000.
It is anticipated that Tesla will announce in their quarterly report to investors that the impairment cost associated with the Bitcoin position will be between a $25 million and $100 million loss.
According to CNBC technology reporter Kate Rooney, the impairment charge will happen due to existing accounting practices.
Tesla holds crypto as an intangible asset, and because of the accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.
Moreover, Tesla cannot mark up the price of Bitcoin until the company executes a sale of the position.
Despite the Bitcoin investment being at a loss, Elon Musk has reiterated that the company has no plans of selling the position in the foreseeable future.
Bitcoin price searches for a committed bid, but still in hibernation
Bitcoin price has failed to engineer a compelling rally from the June 22 correction low of $28,800, despite the formation of a weekly hammer candlestick pattern and the accompanying bullish momentum divergence highlighted on the daily BTC Relative Strength Index (RSI).
Bitcoin price bounce has plotted a rising wedge pattern with the most recent leg higher showing no impulsiveness or sustainability, creating a new descending trend line that may provoke a BTC dip towards the psychologically important $30,000.
A close below the rising wedge’s lower trend line and the 50 six-hour SMA at $34,308 will be the first confirmation that Bitcoin price is readying to revisit the correction lows. A decline below $32,703 will be the final confirmation.
With momentum waning and the declining 50-day SMA at $36,000 pressing down on Bitcoin price, the probabilities indicate that the risk is to the downside in the short term.
BTC/USD 6-hour chart
A close above the 200 six-hour SMA at $36,057 would negate the bearish projection and position Bitcoin price for a test of the rising wedge’s upper trend line, currently at $37,370. However, BTC will still need to engage formidable resistance at the Anchored VWAP from October 21, 2020 at $37,724 before the flagship cryptocurrency can reach the critical resistance at $42,500.
Here, FXStreet’s analysts evaluate where BTC could be heading next as it seems bound for a correction before higher highs.
Ethereum price strikes key resistance as charts press for caution
Ethereum price, like Bitcoin, has plotted a rising wedge pattern from the June 22 low of $1,700 within the context of a larger descending triangle pattern beginning on May 20. In this case, the rising wedge is a continuation pattern as it slopes up against the prevailing ETH downtrend. It projects bearish price outcomes. Those outcomes may be around the corner as the smart contracts giant wrestles with the 200 six-hour SMA (similar to the 50-day SMA).
Note on the six-hour ETH chart below that the most recent high did not touch the wedge’s upper trend line, confirming a decline in momentum, and the current rally high has also fallen short of the upper trend line. At the same time, the RSI shows a bearish momentum divergence with Ethereum price.
If today’s high marks the end of the rally, the measured move of the rising wedge pattern is almost 30%, suggesting a test of the June 22 low $1,700.
A close below the wedge’s lower trend line currently at $2,307 will signal that the pattern is resolving to the downside, and a trade below $2,160 will provide the confirmation.
ETH/USD 6-hour chart
However, Ethereum price may continue in the rising wedge pattern, shaking off the resistance from the 200 six-hour SMA at $2,377 and reaching the upper trend line of the larger descending triangle.
Here, FXStreet’s analysts evaluate where ETH could be heading next as it seems bound for a correction before higher highs.
XRP price testing the most-patient of investors
After a promising bounce of 45% from the June low of $0.512, XRP has resolved to the downside from a rising wedge pattern and located support at the union of the 50 six-hour SMA at $0.657 and the May 23 low of $0.652.
The measured move of the rising wedge pattern is approximately 30%, or a price target of $0.477. As a result, XRP price will bust through the 78.6% retracement level at $0.555 and the June 22 low of $0.512 in the process. It would be a 28% decline from the current price.
A daily close below $0.632 will trigger the new leg lower that may find temporary support at the 78.6% retracement. If the selling pressure persists beyond the June low of $0.512, there are no visible Ripple support levels until $0.360.
XRP/USD 6-hour chart
XRP price is not actionable from the long side until it logs a daily close above $0.760.
For now, the risk remains to the downside for XRP price.
Here, FXStreet’s analysts evaluate where Ripple could be heading next as it seems bound for a correction.