Ethereum Technical Analysis: ETH Stable but Gradually Decoupling From BTC Influence

As Bitcoin adds 19 percent in the last week, Ethereum (ETH) lags and is actually down two percent in the same time frame. The correlation seems to be diminishing and should that be the case, the new found ETH independence deserves a celebration. In the meantime, our ETH trade plan remains unchanged until after we see strong moves above key support or resistance lines.

From the News

In the long term, the goal of cryptocurrencies is to be the best alternative for fiat system if not replace them as a medium of exchange. Now, the process itself would be tasking and before cryptocurrencies become main stream then it must overcame several obstacles along the way. Unfortunately though, those challenges are inherent to these digital assets.

Most coins including ETH are unstable and extremely volatile and that’s why projects that seek to bring that stability are on the rise. It’s the stable coin race and while Tether leads, the case for the perfect holy grail is far from over as a recent report from Diar shows.

The report shows that Ethereum based stable projects have raised more than $200 million from various individuals and venture capitals this year alone. Basis, nUSD, MakerDAO are some of these investment which has attracted funding from DCG, Bain Capital Ventures, Pantera and other venture capitals.

Overly, this is interesting development and the more the funding to these project, the sooner a perfect replacement of fiat backed Tether would be found.

By availing a stable coin that is sufficiently backed, the global adoption of this space would be fast tracked. That’s because not only do they hedge against coin volatility but are useful when trading futures, derivative or options since there is that element of long term stability.

Ethereum (ETH) Technical Analysis

Weekly Chart

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

Technically, ETH prices are stable and while we cannot register impressive gains in the last month, perhaps market sentiment might help bolster price. First, notice that in the last 30 days, ETH price action has been moving inside week ending June 24 high low and finding strong support at $400.

As highlighted before, $400 not only is a zone of strong support but the fact it doubles up as our sell trigger if we see ETH degradation in days to come. Now and in line with previous ETH technical analysis, all we need are strong break outs above or below this $150 trade range with upper limits at $550 or week ending June 24 highs.

Before that happens, my trade recommendation would be unchanged as laid out before.

Daily Chart

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

Even though there are attempts by Ethereum buyers to boost prices, ETH is still two percent down in the last 24 hours. Besides, price action is still oscillating inside a 30 days consolidation with ETH long triggers at $550.

Aside from being our immediate resistance line, $550 is the 61.8 percent Fibonacci retracement level anchoring on April high low. This gives it some weight.

While April high low influences our Ethereum trade analysis as we realize that the past three months or so has been a retracement from April highs since sellers are yet to clear April lows.

As such, we must keep in mind that despite the overall positivity, we shall take a neutral approach until after we see conclusive break outs above $550 or below $400 before initiating fitting longs or shorts.

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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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