Since the May crash, the Ethereum price has gone nowhere. But that can change very quickly. Here’s what to expect when ETH breaks out.
Ethereum is last trading at $2,453, up +$85.43 (+3.61%).
ETH’s market cap sits around $284 billion vs. Bitcoin’s $735 billion.
It has been another lackluster week (month even) in crypto-land. Despite potential catalysts, the prices remain locked within their recent ranges.
Bitcoin is still having trouble clearing $40,000, and subsequently, the Ethereum price remains magnetized to $2,500.
You could argue the last month has been range trader heaven. This month’s money would have been made selling ETH towards $2,900 and buying on dips towards $2,200.
But patterns only last so long. Narrowing trading ranges usually leads to a breakout. This often happens just as day-traders get comfortable selling the top-end and buying the lower end. When the price eventually moves outside of the pattern, it triggers a wave of stops as positions are covered.
The Ethereum price has shown no signs of breaking free over the last month. Lower highs have been countered with lower lows to form a symmetrical triangle pattern. ETH is now approaching the end of this formation.
Hence, the last price is only $1 below the close of May 19th. Low trading volumes suggest market participants have either moved on or waiting for a clearer trading signal.
ETH Technical Outlook
The daily chart perfectly highlights the stale price action since May.
ETH is straddling the 50-day moving average at $2,490. Additionally, it is hemmed in by opposing trend lines. A descending trend at $2,620 caps the price, whilst a rising trend line at $2,280 provides support.
Until either of these breaks, trading activity will remain subdued. However, when a move finally happens, it could well inject some much-needed energy back into the Ethereum price.