Ethereum price weekly analysis 19 June: ETH holds firm despite some hiccups
Despite some challenges, Ethereum is holding steady.
- Minor gains across the week despite some downward pressure.
- When the price of Ethereum dips to $500, the buyers come out.
- Breaking above $600 looks like a big challenge for ETH.
After the terrible run Ethereum and most of the market suffered over the last couple of weeks, it seems there is a little bit of relief in sight. And while the use of the word "surge" by some analysts seems premature, it's good to see a positive trajectory in the markets.
Ethereum started the last seven day period at around US$532 before tumbling to the low $460 range. The price sat at around that level until Friday when buyers entered the market. 24-hour trading volumes lifted from about $2 billion to around $2.4 billion and drove the price up to around $520, erasing most of the previous couple of days' losses.
There was a smaller dip after that rush of activity but the price held steady until early on Tuesday before a green candle was once again lit, bringing the price up to $520 after trading slowed down and volumes hovered at around the $1.2 billion 24-hour trading mark.
Based on the last week, $500 looks like the market's lower boundary, as when the price dips below that the buyers come out. If we look at the last three months, other than a three week period in May, $600 seems to be the upper bound of the market.
That $500 support level is pretty flimsy, at least according to NewsBTC. It says even though there were pockets of higher highs in the daily chart last week, we shall treat the final candlestick as a bear break out and in that case, ideal bear targets would be anywhere between $350 and $400". In its view, that $500 support level isn't likely to hold based on past patterns.
This is where I think looking at the past to gauge the future for cryptocurrency markets is challenging. While history is a great teacher, the market we're talking about is still relatively immature and in need of a shakeout to clear away some of the parties that are manipulating or abusing cryptocurrency for their own purposes.
Regulators are having a say in that and I don't think it's surprising that increased oversight by regulators is seeing the market dip. But once regulators become more comfortable, that will encourage broader market participation and we should see prices move in less volatile ways in the longer term.
That's why the slightly more optimistic view of analysts like Crypto Recorder seems more reasonable to me. It's saying some subtle downward moves are expected but that the $500-$520 level is holding and that support above that price is hard to maintain. But if there's some trading above $540, which we have seen recently, then higher levels are certainly possible.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.