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In the last days of July, the bears seized the opportunity and stopped the rally that started two weeks ago. This resulted in the monthly candle closing with long wicks, which means the battle between the bears and the bulls within the range of $1,350 to $1,800.
Ongoing disputes between China and Taiwan have also dampened investors’ appetite for risk.
Technical analysis
With Grizzly
The Daily Chart
The bulls failed in their first attempt to break the resistance in the $1,700-$1,800 range (in red). After several hits to the 100-day moving average line (in yellow), the bears finally pushed the price down 12% from last week’s high ($1,784).
The ascending 20-day moving average (in white) is seen as the first support ahead of the price, which is at $1528. If ETH breaks below this, the next stop is at $1350, the last low during the recent bullish leg formed. This is an important support to watch out for because failure of this level invalidates the bullish structure.
At the moment, due to geopolitical tensions in Asia, high-risk assets are not very attractive to investors. In this case, until the bulls can push the price above the resistance zone, no significant upside movement is expected.
Basic levels of support: $1500 & $1350
Basic Resistance Levels: $1800 & $2170
Daily Moving Averages:
MA20: $1528
MA50: $1293
MA100: $1718
MA200: $2318
The ETH/BTC chart
The recent uptrend was stopped by hitting the horizontal resistance at 0.073 BTC (in red). Short-term traders are expected to take profits around this level, which is part of the reason for the correction over the past two days.
The first support zone on this chart is in the 0.065 to 0.067 BTC range (green rectangle), which overlaps with the 200-day moving average (in white). The bullish structure remains valid if the ETH vs. BTC price is above this zone. If the bulls support this level, the red resistance zone is expected to be retested.
Basic levels of support: 0.065 & 0.06 BTC
Basic Resistance Levels: 0.073 & 0.078 BTC
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Cryptocurrency Charts from TradingView.
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