It has been another gloomy week for Ethereum, in terms of its price. Ethereum was valued above $200 dollars, at the beginning of the week (19th August) but at press time the price was under $190. The coin’s valuation plummeted by 5.48 percent over the past seven days and trade volume over the time period registered low activity.
Ethereum’s 4-hour chart
Source: Trading View
The 4-hour chart of Ethereum indicated that price had adhered to the formation of a descending triangle which eventually led to the negative breakout on 14th August. At press time, the price had steered towards the formation of another pattern which was the symmetrical triangle. This pattern suggested that another breakout was on the cards for ETH which could transpire on either side of the spectrum.
In case of a negative breakout, the price could go down to around $173 in the charts which would be a monthly low for Ethereum. If the breakout were upward, valuation of ETH would retest the $204.55 resistance and likely breach the $200 mark again. However, the decreasing trade volume was an issue of concern.
Ethereum’s 1-hour chart
Source: Trading View
The one-hour chart of ETH would give a more optimistic outlook for the community. Similar to the 4-hour chart, the price of ETH demonstrated a symmetrical triangle pattern. However, a key indicator hinted at the next potential breakout.
In the chart, it can be seen that the 50-Moving Average had completed a crossover over the 100-Moving Average which is considered a bullish break in the charts. This implied that the chance of a positive breakout was relatively higher for the 2nd largest virtual asset according to the trend lines.
Conclusion
The 50-MA bullish crossover indicated that Ethereum’s price could escape the current bearish trail over the next few days and the price could eventually retest key resistance above the $200 range.
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