Ether Indicators Even Out, Ready for a Bounce? - Short Term Price Analysis

  • Strength showing up on LTF ETH/BTC
  • ETH/USD has found some buyers for now

Yesterday we covered the dire situation for Ethereum (ETH), as it breaks into price territory not seen since 2017 (on its BTC pairing). Today, however, we are getting some signs of life on the low timeframe (LTF) indicators that may suggest an incoming bounce.

We’ll start on the 4-hour ETH/BTC chart (Binance), where we see the general capitulation through what had been the local market structure. After a couple days of selling, buyers have started stepping in on decent - not great - buy volume.

Buyers stepping in(source: TradingView.com)

Here, it definitely looks like Ether is consolidating on generally declining volume, and generally contracting price range.

If we move to the 2-hour, we get a closer view of what appears to be a bullish consolidation. Volume is dropping off toward the end of the pattern(s). Meanwhile, the RSI is very clearly trending up, and bullishly diverging with the candle bodies. Same of the histogram peaks, with the last one putting in a higher high versus a lower price peak.

Strength building on LTF(source: TradingView.com)

These strong indicators suggest that a bounce might be in the offing very soon - although, if a bounce does come, it may not be the full bottom of what some have called Ethereum’s “capitulation.”

Moving to the 4-hour ETH/USD chart, we see the damage that ETH/BTC’s fall has caused, which has only been compounded by Bitcoin’s own losses in recent days.

Hanging on to $275 with fingernails(source: TradingView.com)

After what was becoming a really classic breakout from a falling wedge pattern - a bullish pattern by default - Ether bart-simpsoned down with Bitcoin on July 10 straight back toward the pattern and through critical support at $275.

Staying above $275 will be imperative here, and a bounce on ETH/BTC chart may help with that on the USD chart. Looking at the daily chart, we see a worrying downtrending direction on the histogram.

If lost, we might be in for $200 Ether(source: TradingView.com)

If $275 is not to hold, the next major support is at about $200. For now, we shall see if a bounce materializes - and how much it will help ETH’s USD chart.

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