Ether price analysis: The rally has some juice left

Ether may extend its recovery in the short term

Ethereum (ETH) price analysis                                 
Ether’s 11-week losing streak is over, but can investors build on that recover this week? – Photo: Shutterstock
                                

Contents

Ether ended its 11-week losing streak with a positive close last week. The buyers did not allow the price to break below the psychological level of $1,000 last week, suggesting demand at lower levels. Buyers are trying to build upon the recovery in the week beginning 27 June 2022.

On-chain monitoring resource Santiment pointed out that traders booked profits after the recent rally in Ether, but a positive sign was that the whale activity remained low. This suggests that whales continue to hold on to their positions.

In its latest research, Glassnode analysts said that Ether’s Mayer Multiple hit 0.37, which showed that “Ether was trading at a 63% discount to the 200-day moving average. Just 1.4% of trading days [have] ever seen larger downside deviations.”

The research further added that during the 2018 bear market, Ether traded below the Mayer Multiple band of 0.6, representing a level of downside deviation with approximately 10% of all ETH trading days being below it. This lasted for 187 days at that time while during the current bear phase, Ether has spent only 29 days below the band.

Could Ether go up or will bears sell at higher levels and pull the price lower? Read the ETH price analysis to find out.

Ether price technical analysis: Weekly chart

Ether weekly price analysis chart for 27 June 2022
Ether weekly price analysis chart 27 June 2022 – Credit: Currency.com

ETH’s price formed an inside-week candlestick pattern last week, indicating that the selling pressure may be reducing. The ETH/USD pair rose 6.17% to finish last week at $1,196.65.

If buyers push the price above $1,300, the recovery could pick up momentum and the pair may rally to $1,500. This level could act as a barrier, but if the bulls overcome it, the next stop could be the breakdown level of $1,700.

This is an important level to watch out for because the bears will try to defend it with all their might. If the price turns down from it, the sellers will make one more attempt to pull the pair toward $1,000.

The bears will have to sink and sustain the price below $880 to signal the start of the next leg of the downtrend. The pair could then decline to $680.

Ether price technical analysis: Daily chart

Ether daily price analysis chart for 27 June 2022
Ether daily price analysis chart for 27 June 2022 – Credit: Currency.com

 

Ether’s price reached the 20-day exponential moving average (EMA) on 26 June, but the bulls could not clear the hurdle. However, a minor positive is that the buyers have not given up much ground. 

This suggests that traders are holding on to their positions in anticipation of a break above the 20-day EMA. If that happens, the pair could attempt a rally to the 50-day simple moving average (SMA). The bulls will have to clear this hurdle to signal the start of a new uptrend.

Contrary to this assumption, if the price fails to climb above the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. That could tempt several short-term traders to book profits. 

The price could then drop to $1,050. If this support cracks, the bears may challenge the crucial support at $880.

Ether: Buy or sell this week?

The bulls are attempting to push Ether above the 20-day EMA. If they manage to do that, the pair could pick up momentum and rally toward the 50-day SMA. Ether’s price analysis suggests that a break above the 50-day SMA could signal a potential change in trend. This positive view could invalidate on a break and close below $1,050.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Further reading

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