ETH Technical Analysis August 7th: Last Week’s Losses Dragging Ethereum

There is a clash between fundamentals and technical chart formations in Ethereum (ETH). Overly, fundamentals are positive pointing to potential gains. On the other hand though, ETH prices continue to dip lower testing key support lines and negating positive vibes from coin specific news.

From the News

  • Well, according to an online survey by CoinTrendz, Ethereum is the third most talked about coin following the likes of table topping Tron and Bitcoin.
  • In a bid to drive global adoption, CoinBase is now targeting websites with their open source plugin that’s applicable in Woocommerce. This will allow website owners and merchants to accept payment in cryptocurrencies including Ethereum and three others.
  • Boerse Stuttgart, the second largest stock exchange in Germany after Boerse Frankfurt is now spreading it wings and diving deeper into crypto trading activities. While its app Bison is set to be launched later this year, the exchange has announced plans of being a platform for trading and issuing out tokens.
  • Haven Coin has decided to exist concurrently at EOS and Ethereum. The “finer details” on how this will happen will be available in public domain in days to come.

Technical Analysis

Weekly Chart

Ethereum (ETH) Technical Analysis
Click here to see the full size Ethereum Weekly Chart by Trading View

Week over week, Ethereum (ETH) prices is down 10 percent and as prices slide, ETH continues to break off from the 40 day consolidation which started mid-June 2018.

All in all, odds of Ethereum (ETH) clawing back and reversing losses is pretty hard now that we have a clear bearish engulfing pattern with pretty decent market participation accompanying this move. On top of that, we can take hint of the last three or four weekly candlesticks.

Most of them were trading within tight ranges with long upper wicks as prices kept oscillating within week ending June 24 bearish candlestick. It’s worth noting that the same bear stick did retest $400 and has been successful in capping gains thus far.

So, if anything, chances are we might see a confirmation of last week’s bearish bar and when that happens, prices will dip below $400, our main support line and sell trigger.

Daily Chart

Ethereum (ETH) Technical Analysis
Click here to see the full size Ethereum Daily Chart by Trading View

Judging from the chart, ETH prices are moving lower and are down one percent. Now, even though they are confined within a 40 day consolidation, ETH bears are clearly in charge and after breaking below that minor 30 days support trend line, we suggested sells with first targets at $400.

Considering how prices are panning out, my recommendation is to wait for a clear break below $400 before initiating shorts as laid out in previous Ethereum (ETH) trade plans.

When that happens, the third phase of the bear break out pattern that begun following June 10 bears would have been confirmed. Ideal first targets would be $350 and later $300.

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Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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