Disclaimer: The following price prediction should materialize over the next two weeks.
On May 28th, when Ethereum surged by 8.75 percent, the 2nd largest digital asset breached above the resistance of $226. Now over the past five weeks, the asset has been able to maintain consolidation between $227 and $250 albeit a minor decline on 24th June, when the asset dropped below the aforementioned range for 5 days. However, things might be taking a drastic turn in the markets as a long-term pattern seems likely to complete formation in the near future.
12-hour chart
According to the analysis above, Ethereum’s valuation has been oscillating within the trend lines of an ascending broadening wedge since 28th June. Prominent higher highs were observed on $232 and $247, where higher lows were seen at $216, $224 and $236. With the price hovering near the lower trendline of the pattern after a partial rise on 13th July, the possibility of a pullback looms large in the charts.
Hence, a re-test at $226 might be evident over the next week or two. A higher bearish momentum may take the valuation all the way down to $216. Relative Strength Index or RSI remains on a decline which indicated that selling pressure is taking charge. However, the long-term pattern which may dictate the price direction over the next month is pictured below.
1-day chart
Since the end of June, Ethereum’s valuation can be seen testing the resistance at $250 for a total of three times. Considering the asset declines down to $216 support, a triple-top pattern will be confirmed which may have major bearish implications. The inability to breach resistance at $250 would discourage buying pressure if the valuation drops down to $216. With higher trading volume evident in the current range, the likelihood of a confirmed triple-top is yet to be concrete but the possibility remains.
However, the fact the 200-moving average continues to act as strong support should keep the assets hope alive to undergo a rally after its current correction period is over but still, a strong pullback is not out of the picture just yet.
Conclusion
Ethereum will possibly re-test $226 by the end of July or by the third week of the month.
The post appeared first on AMBCrypto
