The Ethereum price is struggling for direction between major indicators. Until ETH escapes the clutches of the 50 and 200 DMA’s, the outlook is unclear.
Ethereum is trading at $2,147, up $8.30, (+0.38%).
For the last three days, ETH has been grinding sideways in a tight $160 range along the 200-day moving average. Although the price has yet to trade below the important indicator, it is also shows no signs of wanting to go higher.
Following May’s collapse, Ethereum has been confined to a downtrend that has put a lid on any signs of a rally. And in my opinion, until the cryptocurrency market finds a catalyst, the Ethereum price could go either way.
Furthermore, although ETH recovered well from last month’s dip to $1,650, the 45% bounce was reversed at the 100-day moving average, which suggests the price is not yet in the clear.
The daily chart highlights a strong level of support around $1,670, which has been close to the bottom on three recent corrections. The most recent of which came in June, when ETH broke below the 200-day moving average for the first time in almost a year.
However, the resulting rally took the Ethereum price back above the long-term indicator. Although the recent reversal has dragged ETH back towards it’s current $2,030 level. A failure to stay above $2,030 would therefore indicate that ETH may take a path lower towards $1,670.
Additionally, the 50 DMA at $2,342 has proved a solid resistance level over the last six weeks. Aside from a brief penetration on the 26th of May, the price has been unable to breach the gauge on a closing basis since May’s crypto wipeout.
Furthermore, additional resistance looms overhead. A persuasive downtrend at $2,450, followed by the 100 DMA at 2,564 add to the downside pressure. However, should the Ethereum price scale $2,564 the outlook improves dramatically. In this event, $3,020 becomes and acheivable upside target.
At the moment, I would give equal weighting to both the bullish, and bearish scenarios. However, at some stage the price will forge a direction. Therefore, traders should prepare to jump on momentum when it comes.
Although, I can’t predict when that may be.
Follow Elliott on Twitter.
