ETH price analysis (7-13 June): downtrend to end?

A strong relief rally is likely if the bulls can keep ether’s price above $3,000.73.

Crypto analytics firm Santiment highlighted several positive factors for the Ethereum network in its report on 2 June. The number of ether deposits to the exchanges have been reducing in the past few days, suggesting that selling pressure is reducing.

Ether active addresses have continued to grow in the past ten days, which is another positive sign. The sharp drop in ether gas fees – the transaction charges – to an average of $5.48 a transaction “allows traders to move assets more comfortably”.

The firm pointed out that the top ten Ethereum wallets currently hold 19.08m ether, just below the all-time high of 19.25m ether, which is another bullish sign.

CoinShares’ 1 June Digital Asset Fund Flows Weekly report shows that institutional investors are utilising the current fall to buy ether. The ether crypto products witnessed an inflow of $46.8m, while bitcoin products saw an outflow of $4m. This suggests institutional investors could be shifting their investment from bitcoin to ether.

Could ether sustain the momentum and lead the crypto recovery? Read on to learn more about ether’s price trend analysis.

Ether price technical analysis: Weekly chart

Ether price analysis: Weekly chart

Ether’s price rose 13.58% to close last week at $2,712.01. The bulls have been facing stiff resistance in the zone between the 38.2% Fibonacci retracement level at $2,746.81 and the 50% retracement at $3,058.58.

However, the positive sign is that the bulls have not allowed the price to dip below the 20-week exponential moving average (EMA). The upsloping moving averages and the relative strength index (RSI) in the positive zone indicate the bulls are in control.

The bullish momentum is likely to pick up after the buyers propel the price above $3,058.58. The next stop could be the 61.8% retracement level of $3,370.35 and then the 78.6% retracement level at $3,814.23.

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This positive view will become invalid if the price turns down from the current level and breaks below the 20-week EMA. Such a move will suggest that supply exceeds demand and the ETH/USD pair could then start the journey towards the 50-week simple moving average (SMA).

Ether price technical analysis: Daily chart

Ether price analysis: Daily chart

Ether’s price continues to trade inside the ascending triangle pattern. If the price does not break above or below the triangle within the next few days, the price action will reach the apex of the triangle, which will invalidate the bullish setup.

The flattish moving averages and the relative strength index near the midpoint suggest a balance between supply and demand. This indicates the pair could remain range-bound for a few days before starting the next trending move.

This neutral view will become invalid if the bulls thrust the price above $3,000.73. Such a move will complete the bullish setup, paving the way for a possible rally to $4,271.15. Alternatively, a break below the triangle could result in a drop to $2,182.52 and subsequently to $1,730.31.

ETH price technical analysis: Trading this week

Ether has been consolidating in a tight range for the past few days. The ETH/USD pair is likely to turn positive in the short term if it breaks and closes above $3,000.73. If that happens, the bullish momentum could pick up, propelling the price towards $3,370.35. Traders may try to ride this possible move higher by keeping an adequate stop-loss.

However, if the pair fails to close above $3,000.73, the bears are likely to sell aggressively, which could pull the price down to $2,182.52 and lower. Traders could remain on the sidelines if the price action turns weak.

Trade Ethereum to US Dollar - ETH/USD chart

Ethereum to US Dollar
Daily change
Low: 1089.25
High: 1162.82

Further reading

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