Quick summary:
- $228 is once again the level to watch ahead of Ethereum’s weekly close.
- This area has provided adequate support for ETH since the beginning of June.
- With a new week ahead, and like Bitcoin, there is a 50:50 chance it could go either way for Ethereum in the crypto markets.
Another weekly close is a few hours away for Ethereum and the entire cryptocurrency spectrum. The last one week has been uneventful for ETH as its price has oscillated between $240 and $218. In the last five days or so, Ethereum has once again relied on the strong support zone of $228.
A Bag of Mixed Signals from Ethereum at the Charts
Checking the daily ETH/USDT chart courtesy of Tradingview.com, the following is observed.
- The 50-day (white) moving average is providing adequate support for Ethereum around the $218 area.
- Ethereum’s current price at $229 is above the 50-day, 100-day and 200-day moving averages further indicating that ETH still has some bullishness to be confident about.
- However, trade volume has reduced and is in the red further pointing towards a bearish scenario in the coming week.
- MACD is providing mixed signals as its histograms indicate a reduction of selling whereas the moving averages are indicating a downtrend.
- On the other hand, the MFI is low at 37 indicating slight bullishness.
- The same short term supports are still valid: $225, $219, $214, $210, $205 and $200.
- In terms of short term resistances, they include $232, $235, $238, $247, $250 and $253.
Conclusion
It has been a slow week for Ethereum with $228 being the level to watch once again in a manner similar to how $9,300 is Bitcoin’s support zone of interest during the weekly close. A brief technical analysis reveals that there is a fifty-fifty chance that it could go either way for ETH in the crypto markets with the new week.
Also worth remembering is that the CME Bitcoin futures expire this Friday, 26th of June. If history is to go by, it should be a bearish week for Bitcoin which will also translate to a red week for Ethereum. However, with the stock markets in high gear, it might not matter that the futures are expiring. As a result, Bitcoin will continue being stable and possibly exhibit gains that will allow Ethereum to also thrive.
It can, therefore, be concluded that the sideways movement of Ethereum should be watched with patience as a strong move above $250 will indicate a bullish scenario and a drop below $200 will open the door to a bearish one for ETH.