Ethereum price analysis shows that the dip to $2,200 could turn bullish
The emergence of a symmetrical triangle in ascending channel sparks interest
Breakout can occur if the pair closes above the $2,500 level
The breakout is stagnating near the 50-day simple moving average
Ethereum bulls have a reason to cheer as the emergence of a symmetrical triangle pushes the price channel higher. The price is trading at $2,430 and close to the 50-day simple moving average, igniting more buy orders. The constructive trade setup on the weekend can further bolster the bullish revival.
The sharp recovery from the May 23 lows is helping the price channel turn into an ascending slope. On the downside, the price is well supported near the $2,042 where the selling can subside. Ethereum price analysis shows that the dip towards $2,200 was received well by the buyers and the pair quickly went higher towards $2,400 near the 100-day MA.
The symmetrical triangle on the short-term hourly charts. As per Ethereum price analysis, the ETH/USD has crucial support at $2,330 and then at $2,200. The price will face massive resistance at $2,470 and then at $2,650. Unlike Bitcoin, which shows subtle signs of a rebound, the ETH is performing relatively well by touching $2,900 earlier this week.
Ethereum price movement in the last 24 hours: Stuck within Bollinger Bands
In the past 24 hours, the ETH/USD pair is trying for a breakout but is stuck under $2,500. The pair is struggling to cross $2,600, and the Bollinger bands have a range of $2,900 to $2,170. This week’s high of $2,900 is proving to be another resistance near the .382 Fibonacci resistance. As the coin struggled to cross $2,900, the initial support at $2,200 helped bulls stabilize the fall.
The bulls have a strong defense near the $2,200, which is also the .618 Fibonacci resistance for the pair’s rise. The symmetrical price chart is helping the price channel ascend upwards and challenge the upper Bollinger Band. The triangle’s apex is also scripting a breakout pattern according to Ethereum price analysis.
The pair is facing stiff resistance at $2,470 and then at $2,645. If the bulls manage to close the pair above the $2,740, they are likely to face heavy selling pressure near $2,987, where the .382 Fibonacci resistance is beckoning sellers.
ETH/USD 4-hour chart: Sellers looking to short near $2,445 level
Sellers are also looking for active short strategies at this juncture. The price has been summarily rejected from the $2,440 level and has found support at $2,350. The RSI on the daily charts is pointing upwards and looking to cross higher towards the 53 level. The bullish momentum may well script a cross-over on the MACD charts.
Ethereum price analysis shows that the constructive rise towards $2,900 has emboldened the bulls. The 50-day simple moving average is supporting the symmetrical triangle on the charts. The sustainable price action is also supporting the bullish viewpoint. The only factor that can dampen the spirits of the bulls is the broader weakness in the crypto market.
The bullish hammer candlestick pattern on the hourly charts is further encouraging the daily charts. The rise in volumes is also helping the bulls challenge intermediate resistances on the way towards $2,900. The current price action also cements the double-bottom pattern and will further help the bulls.
Ethereum price analysis conclusion: ETH ready to bounce higher above $2,500
The massive 70 percent rise from $1,900 lows to the May 26 high of $2,900 shows that the ETH bulls have sprung back into the action. The volumes and liquidity are there and only need a spark from the technical indicators. The rally towards $2,900 was not merely a ‘Dead-Cat’ bounce but rather a constructive rally.
Ethereum price analysis shows that the bears may attempt another short rally to take the price towards $2,000. If the bears can manage to pull the price down further, the bulls will likely use the opportunity to buy more ETH.
The Ethereum price analysis shows that the bulls will target the $3,369 level on the long-term horizon. The sellers are going to be near the strategically important 200-day simple moving average to trigger another downturn. At $2,000, institutional investors and large traders are surely going to participate in the accumulation phase.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
According to the People’s Bank of China’s announcement, foreign exchange deposits in China have crossed the $1 trillion mark for the first time. Economists believe that this will give the Chinese government a lot more freedom to allow the outflow of capital from the country.
A major reason for this increase in foreign exchange flowing into China is a rise in demand for certain Chinese products during the pandemic-related restrictions. Chinese exporters have performed exceedingly well in the past few months and have gathered a large foreign currency store.
The rising trend in the Chinese market is also attracting more investors. Many foreign investors exchange dollar currency for the Chinese Yuan to purchase shares in the Chinese stock market. But now China is facing a different problem. It does not have many avenues to invest its foreign currency. Experts believe that the Chinese government needs to urgently introduce some policy reforms in the country so that Chinese investors can spend more of their foreign currency in overseas markets.
At present Chinese banks and lenders are using most of their foreign exchange deposits to fund loans in the country as well as overseas. The heavy inflow of dollars into China, but a relatively lower outflow rate, is now pushing down dollar value in China very fast. So banks are now buying Yuan instead of the dollar currency. This is strengthening the Chinese Yuan. But investors fear that if the Yuan becomes too strong, hot money will flow into the country, and the Chinese import business will face a devastating situation.
To curb the issue, China is already trying to control the liquidity of the dollar. The ceiling for investing overseas has been increased to record levels. It has also put in place investment schemes for capital outflow that will allow Chinese investors to invest more than ever before in overseas markets.
George Magnus of Oxford University’s China Center, speaking about the Chinese situation, has said that foreign exchange inflow surges can benefit an economy. Still, these surges are usually temporary and can reverse at any time leading to dire consequences for the economy. It now remains to see how well China can utilize its Forex inflow to prepare itself against potential future reversals.
On June 21st, the negative news from China pulled a turbulent decline in Bitcoin once again. The price of Bitcoin once collapsed to $28,000, beating May’s price bottom.
Since the start of Q2, Bitcoin’s price fluctuations have been continuing. The correction of the bull market, contradictory statements of KOLs, and the tighter regulations from different countries have made the cryptocurrency market more sensitive and volatile.
The roller-coaster price swings reveal that the cryptocurrency market is far more fragile and unstable than traders expected. Yet, compared with market volatility, the more catastrophic thing is that traders cannot respond in time to the rapid changes in real-time price.
On May 19th, along with the slump in the price of cryptocurrencies such as Bitcoin, Coinbase, the so-called largest digital cryptocurrency exchange in the United States, crashed as well. Coinbase later said in a statement that they had found some problems in Coinbase and Coinbase Pro, and they would provide an update as soon as possible.
Facing the collapse of Coinbase’s website and App, some users expressed complaints on social networks because when the price of digital cryptocurrencies was plummeting, they wanted to take the opportunity to buy the dip but did not succeed, thus suffering huge losses. Affected by this, Coinbase’s stock price fell 10% that day.
Confronted with system outages, server overloads, and unexpected crashes that occur from time to time, users often can do nothing but be exposed to forced liquidation or miss the best time to buy the dip and escape the top.
In a time of volatility, the market fluctuates greatly, and it is easy to suffer great losses if you fail to time the market. According to incomplete statistics, more than 15 system crashes(large or small) of Binance’s servers each year. It means that there will be one collapse of Binance’s servers every month on average. Each system crash could make at least millions of users unable to take action. Therefore, traders need to choose a stable and safe exchange. Bitwells will be the option for you.
Bitwells is a futures trading platform focusing on the Bitcoin market, providing futures leveraged trading of mainstream digital currencies like Bitcoin, Ethereum, Litecoin, Ripple, etc. The company is registered in the UK and is jointly developed by Internet experts, cryptocurrency traders, and financial professionals, trusted by more than 200,000 traders in over 200 countries/regions worldwide. No KYC, no deposit fees, App and PC available, traders can get the most attentive services, including 24/7 customer support on Bitwells.
Why Choose Bitwells?
Simplicity And Security
Bitwells runs a professional technology team and financial operation to provide you with an experience of simplicity and security. The lightning-speed execution ensures speedy and highly efficient trading on your smartphones, tablets, and computers, which largely avoids overload problems. Even in a period of great volatility, you don’t need to worry about being unable to log in due to a system crash.
Over 15 market makers guarantee the market liquidity and immediate transaction, which provides users with an accurate price. The Price index on Bitwells is based on calculating the weighted data from 5 major exchanges in the world – Binance, Poloniex, Bitfinex, Huobi, and Coinbase. Suppose any exchange fails to provide quotes due to its service performance or any problems. In that case, Bitwells reserves the right to apply a new Price Index based on the weighted average of the remaining working exchanges immediately.
Amazon’s super transaction engine and strong basic support ensure that users’ every transaction is accurate, fast, and safe. Bitwells takes security measures similar to banks to ensure that the security of customer assets stored in trading exchanges reaches the highest standards. Several layers of protection have been implemented, such as multi-signature withdrawals and two-factor authentication (2FA).
Low Service Fee
Bitwells does not require deposit fees from users. According to this report, it charges 0.0005 BTC per BTC-withdrawal, which is below the global industry average (being 0.00059 BTC per BTC-withdrawal according to this report).
Demo Account With 10 BTC
Once registered, users on Bitwells will be offered a real trading account and a demo account with 10 BTC. The simulation pattern is user-friendly, which prevents beginners from losing money without knowing the rules. Users can use the demo account to get familiar with the trading process and test trading strategies to improve accuracy.
Bitwells offers users trading with 100X Leverage. With 100X Leverage, traders can make 100 times of profits from both directions( long or short).
100 Deposit Bonus
Bitwells now offers a 100% deposit bonus as a thank-you gift for every user. When you deposit into Bitwells, the same amount of Bitcoin will be accredited to your account (max. 10 BTC each deposit). If you deposit 1 BTC, you will get 2 BTC, which you can use for transactions and earn more profits.
During periods of high volatility, a stable and professional exchange will allow you to hedge losses and make profits for yourself. Bitwells is committed to bringing a good trading experience to every user.
Sign up on Bitwells and maximize profits out of your Bitcoin.
As announced by Ethereum (ETH) core developer Tim Beiko, the London hardfork upgrade was successfully activated on the Ropsten test network.
Following the last Berlin upgrade, Ethereum’s London hardfork is anticipated to solve the network’s congestion and high transaction fee issues, which raised concerns and criticism regarding its scalability and performance.
We have a block!
“We have a block! Took a bit longer than expected, but London is live on Ropsten,” said Beiko, adding he is “pretty stoked to have sent the first 1559-style transaction included on a public Ethereum network *ever*.”
Beiko noted that blocks were a bit slow at first, due to the lack of miners upgrading:
“Because mining is altruistic on Ropsten (block rewards are worthless), it can be hard to get folks to upgrade in a timely fashion.”
Following Ropsten, on June 30, the update will be implemented on the Goerli test network and finally Rinkeby will upgrade on July 7.
London hardfork is one of the latest network upgrades proceeding the migration of Ethereum (ETH) towards Ethereum 2.0 and implements the Ethereum Improvement Proposal (EIP) 1559:
“The proposal in this EIP is to start with a base fee amount which is adjusted up and down by the protocol based on how congested the network is. When the network exceeds the target per-block gas usage, the base fee increases slightly and when capacity is below the target, it decreases slightly. Because these base fee changes are constrained, the maximum difference in base fee from block to block is predictable.”
Historically, Ethereum priced transaction fees using the ‘first price auction’ model and in order to tackle major inefficiencies, the controversial improvement initiates a dynamic fee structure and periodical fee burnings.
The new fee system means the miners only get to keep the priority fee, with the base fee always being burned (destroyed by the protocol), while ensuring only ETH is used to pay for transactions on Ethereum, cementing its economic value within the platform.
This will largely reduce miner extractable value risks and counterbalance Ethereum inflation.
A major day for Ethereum, as it takes another big leap from its Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.