July 16, 2020 / Analytics

Ethereum Price Analysis: ETH/USD Will Drop To $230

Ethereum (ETH) cryptocurrency rate did not stay in the range above $ 240. Therefore a downtrend occurred in the market. If the bulls do not seize the initiative, ETH/USD will drop to $ 230 by July 23.

Key Points

  • Ethereum price is consolidating above the support zone around $ 235.
  • A bearish trend line has formed with resistance at $ 238.
  • If the $ 235 barrier is broken, the cost of ETH will be reduced to $ 230.

Ethereum fell from $ 245 to $ 237 on Monday and then ETH/USD corrected to $ 242. However, the bulls failed to defend the support barrier at $ 240, and the asset price fell back to $ 237. The $ 235 level plays the role of a key support zone, therefore, breaking this barrier will mean a decrease in the ETH rate to $ 230.

The downward trend that began on July 8 is not very dynamic. Judging by the chart, the Ethereum rate may rise to a maximum of $ 240. After that, ETH/USD should plummet, as happened on July 13th. It is unlikely that sellers will manage to break the support around $ 230 within the next week. In this regard, the downward trend will fizzle out at this level.

eth chart

Ethereum Blockchain Indicators Indicate Bullish Trend

Several key factors signal an impending bull run in the ETH market:

  • the capitalization level of ERC-20 tokens exceeded the total cost of Ethereum coins for the first time;
  • the number of ETH coins that are stored in smart contracts of financial platforms has reached new ATH – 3.4 million;
  • the ratio between the price of Ethereum and the asset utilization rate dropped to a minimum.

If a reversal occurs in the ETH market, then the price of the virtual currency will rise to $ 251. To perform this calculation, you need to measure the distance between the highest and lowest points of the triangle and add the resulting figure to the value of the asset at the time of the trend line breakout.

eth price

This week, the activity of users of the Ethereum network has increased. On July 14, the third-highest record for the number of active addresses in 2020 was set, and on July 15, the fourth. However, the asset rate has changed insignificantly during this period. Historical data suggests that a significant discrepancy between the level of volatility in the ETH price and the growth in the number of active addresses indicates the start of a bullish trend.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI index is above 40 (in the neutral zone).
  • The major support level – $ 235.
  • The major resistance level – $ 242.
  • The nearest pivot points are $ 231 and $ 239.
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