- Ethereum is down a sharp 11.5% this week after breaking beneath $2,000 and reaching $1,860.
- The coin is now trading inside a falling wedge pattern, which is usually bullish on the breakout.
- Against Bitcoin itself, Ethereum broke the 100-day MA as it battles around ₿0.06.
Ethereum is down a very sharp 11.5% this week as the cryptocurrency breaks beneath $2,000 to hit $1,860. It broke back beneath the 200-day MA level on Tuesday as it plummeted beneath $2,000.
The coin is now trading inside a falling wedge pattern which is typically bullish when they break toward the upside. All eyes are resting on the next major support at $1,800.
Ethereum Price Analysis
What has been going on?
Looking at the daily chart above, we can clearly see the troubling week Ethereum witnessed. The coin was pushing higher at the start of July but was unable to break resistance at $2,365, provided by a bearish .236 Fib Retracement level.
From there, ETH dropped lower but managed to maintain support at $2,075, provided by a .786 Fib Retracement.
On Monday, Ethereum penetrated the $2,075 support and dropped into the 200-day MA. It fell beneath the 200-day MA and the $2,000 support on Tuesday as it started to plummet.
Since breaking $2,000, Ethereum has cleared a clear falling wedge pattern. A falling wedge is typically bullish and usually breaks toward the upside. However, with the increased selling pressure from BTC, it would not be surprising to see ETH breaking the downside of this wedge.
Ethereum price short term prediction: NEUTRAL
ETH still remains neutral, but a break beneath $1,800 would turn it bearish in the short term. It would need to rise beyond the July resistance at $2,365 to start to turn bullish. A clear break above $2,600 would provide the framework for a longer bullish run.
Looking ahead, the first strong support lies at $1,800. The support is provided by a .886 Fib Retracement and the lower angle of the falling wedge. It is also the low-day closing price for July.
Beneath $1,800, support lies at $1,715, $1,650, $1,600, and $1,510 (March 2020 lows).
Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at the upper angle of the falling wedge, around $1,950. This is followed by $2,000, $2,075 (200-day MA), $2,080 (20-day MA0, and $2,200.
Additional resistance lies at $2,290 and $2,365 (bearish .236 Fib Retracement).