Ethereum (ETH) Technical Analysis July 10th

Like most coins, there is clear value erosion in Ethereum (ETH). In the last 24 hours for example, it is down six percent and this comes day after rejecting prices above $500, our buy trigger line. Instead what we have seen is series of lower lows forming a three bar bear reversal pattern, the Evening Star.

From the News

There are nuggets of precious information that the U.S. law firm Foley & Lardner LLP found about cryptocurrencies in general. Well, it is emerging that executives and investors prefer Ethereum (ETH) over other leading cryptos as Bitcoin and even those with better security features as Monero.

Of course, this is new information that can be leveraged by exchanges or those planning to list their tokens but it is no surprise. We have been seeing a proliferation of smart contract platforms with some dubbing themselves as Ethereum killer but they don’t even come close.

EOS being the latest smart contract and dApp platform that has obviously sacrificed decentralization for scalability and through-put isn’t delivering. It is now deep in a quagmire. A toxic combination of centralization criticism, network bugs, human arbitration and most recently RAM speculation is obviously weighing it down. As that is happening, Ethereum continues to recent applause from pundits and tech leaders as Sergey, co-founder of Google, who says he actively mines Ethereum with is teenage son.

It’s no doubt that all these makes Ethereum superior but what could fast track adoption is if there were better regulation. Yes, some countries as China are closely watching this space though ICOs are illegal-like many countries– while in others, cryptos have been banned. What the market needs is a clear position, from leading economies, on matters cryptos and even plans in place to devise laws for better controls.

Ethereum (ETH) Technical Analysis

Weekly Chart

Ethereum ETH Weekly Chart July 10
Click here to see the full size Ethereum ETH Weekly Chart July 10

Before this week, Ethereum buyers have been trying to make a come-back. Fact is, from our previous analysis, everything anchored on how week ending July 8 candlestick would close. And yes, it closed as a bull and what we had was a nice three bar bullish reversal pattern, the Morning Star.

Our task this week was to pick buys on every pull back towards $400 and that what we should be doing this week. Remember, ETH prices are trending inside a $100 trade range between $400 on the lower side and $500 on the upside and for those levels are our respective short and buy triggers.

Daily Chart

Ethereum ETH Daily Chart July 10
Click here to see the full size Ethereum ETH Daily Chart July 10

We are bullish and for buys to be warranted then we must see prices moving above $500. However, with an Evening Star complete with a doji candlestick right at the trigger line and July 2 highs, ETH sellers are pushing prices lower. At current prices, ETH is trading just around $450 and my suggestion is to sync with the trend with stops at $500 and targets at $350-April lows.

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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