ETH Extends Consolidation Below $1,700; Is Upside Over?

Ethereum price analysis for the day indicates the extended sideways movement for the third straight session. A risk-averse market dumped the riskier asset and moved to safe haven financial instruments such as gold and the U.S dollar. The price moved in a very narrow trading range with no clear directional bias.

However, the consolidation near the higher level of the trend indicates the bulls are seeking fresh buying momentum to build up pressure for the next leg-up. The neutral momentum oscillator suggests a  dip buying opportunity.

As of press time, ETH/USD is exchanging hands at $$1,618.23, down 0.23% for the day. The 24-hour trading volume fell 26% to %15,137,749272. A decline in price with volumes is a sign of consolidation or weakening sell-side momentum.

• ETH price portrays subdued price action amid a flat broader crypto market.
• The price is consolidating near $$1,620-$1,630 support zone with below-average volumes.
• A daily candlestick above $1,680 would infuse fresh buying into the asset.

ETH price consolidates before a breakout

ETH’s price traded in a range from June 13 to July 13 from $8,80 to $1,280. On July 16, the price gave a breakout from the range, and start making higher highs and higher lows on a daily basis. ETH’s price after giving an impulse move from $1350 to $7190, takes a retracement from a higher level to the 50% Fibonacci level, which is at $1,567.  Recently, the price takes good support at 20-day EMA, indicating bullishness on the higher side.

The daily chart shows ETH’s price found reliable support zone around $1,570-$1,590. At the same time, the nearest resistance is $1,680.  If the price is able to close above  $1,680, with good volumes then we can expect a good to bullish momentum up to the highs at $1,738.

Next, the market participants would aim for the psychological $2,000 mark.

On the flip side, a downside could be expected in ETH if the sellers break the $1,580 support zone. In that case, the sellers would take out the low of July 27 at $1,420.

On the hourly time frame, ETH price formed a bullish Flag and Pole pattern and is trading in a flat range. Amid renewed buying pressure a breakout if happens to the upper side would result in further good bullish momentum. Key resistance is playing near the $1,680 zone, a spike in buying order would explore $1,720.

In conclusion, to break the consolidation to the upper side, the coin must draw in more buyers. The formation of multiple Doji candlesticks near the support level favors the bullish breakout.