Ethereum price weekly analysis 10 July: A small drop from the last week indicates uncertain times

Posted: 10 July 2018 6:55 pm
News

Ether has lost about 3% from its value over the last week as trading volumes remain subdued.

Key takeaways

  • Ether has spent most of last week trading in a relatively tight range.
  • Volumes are subdued with traders holding back in a game of "wait and see".
  • We may be on the cusp of a larger fall but it's too early to tell.

For most of the last seven days, Ether has traded within the same band, between $450 and $480. There was a period of about 48 hours when the price sat between $480 and $500, but the price dipped below the $480 resistance level again today.

Overall, that's left us with a fall from about $480 to $460 for the week.

Trading volumes peaked at about $1.8 billion over a 24-hour period before dipping to around $1.2 billion. Those levels are quite low and reflect what we've seen with other cryptocurrencies. Prices might be relatively steady at the moment but trading volumes are down, indicating traders are, for the most part, keeping their powder dry and not executing large trades.

Two weeks ago, we saw 24-hour volumes peak at almost $4.6 billion. We're a long way from those levels.

Based on the last couple of weeks, Ether looks to be finding support at around $460 but meeting resistance at $474. Consequently, it's trading in a narrow band much of the time, with the occasional short-term breakout. And while the price did breach $500 for a moment, it fell back quickly to that support level.

That $500 level is attracting the sellers according to FXStreet. But a published article at the same site suggests ETH is in a rising wedge, suggesting there is some chance of a price breakout.

However, a fall that holds the price below $475 could signal a sharper, further decline according to NewsBTC. That looks like a distinct possibility after today's fall of almost 5%, which has the price currently sitting at $463. If the price stays here, we can expect further falls.

What's worrying is that most of the market took a big hit today and the gains made over the last week have been erased and, in some cases, reversed. That suggests there's still a lack of overall confidence in the market as almost every major coin moves in unison. Whether today signals another fall, like the one we saw over most of June, or just a small correction in an overall upward movement will become clearer over the coming days.

Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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