Ethereum Price Technical Analysis (August 1): Narrow Movement and Indecision

Ethereum (ETH)trade is currently trading at $214.43. The digital coin is trading between the support and resistance levels with an upper limit at $222 acting as resistance and a lower limit of $206 acting as support. Overall, the price is in a sideways trend, very similar to that of Bitcoin(BTC)trade.

Dow Theory

According to Dow Theory, the virtual coin is currently appearing in the accumulation phase; during this phase, negative sentiment starts to dissipate. This phase starts after a downfall and it is followed by the public participation phase. Long-term investors start taking positions during this phase.

Moving Average

When taking 9 period moving averages (blue) with 21 period moving averages (red), a bullish crossover is seen but the ETH price is below the 9 period line and very close to the 21 period moving averages line, indicating indecision.

Bollinger Bands

When applying Bollinger Bands, it can be seen that the channel is shrinking, which is an indication of decreased volatility and indecision in the market. It is suggested to wait for the channel to expand with a positive momentum before taking long positions.

Conclusion

Ethereum (ETH)trade is currently trading at $214.43. Resistance level is at $222 and $206 is acting as support level. The digital coin’s chart is indicating an indecision and it is suggested not to take long positions until the price breaks the resistance level and the momentum is positive.

Midterm target is $238.5 and long-term target is $277. If the price breaks the support at $206 then the price may touch the lower $188 level.

Pivot Points

Technical Indicators