Ethereum (ETH) – Greater Use Cases & Market Volatility
The Ethereum blockchain continues to find new use cases and greater acceptance. Several companies, including big names such as IBM and Samsung, are now developing projects and/or running operations on the Ethereum blockchain. Industries in particular, which involve interaction between parties and are exposed to human error or bad faith, serve as the ideal platform for Ethereum smart contract application. With new and increases use cases and applications, the cryptocurrency ETH is also gaining more traction. Currently though, the Ethereum (ETH) price trajectory has been quite volatile, much like any other cryptocurrency.
Ethereum (ETH) Price Analysis
After a good run up to prices around $1400/ETH at the end of 2017, ETH reversed course during the 1st quarter of 2018 and slid down to $360/ETH. It subsequently recovered to cross $800/ETH through April, but slid back again to around $430/ETH currently (July 14, 8:00 UTC).
Technical Indicators – Falling Wedge Reversal
Presently, technical indicators do have certain bullish signals to watch for. A falling wedge pattern has been formed (see chart above). The falling wedge is designed to spot a decrease in downside momentum and alerts potential trend reversals. The chart clearly depicts how the downside momentum in ETH price has been declining since early May. The price broke out of the falling wedge on July 4th and has been trading above the upper resistance line (of the wedge) since then. However, one should keep in mind that once the resistance is broken, there sometimes can be a correction to test the newfound support level.
The Possibility of a Bullish Crossover
Looking at the moving averages too, we get a bullish sign. The 14-day moving average (14 DMA) is now moving upwards, albeit with weak momentum. Meanwhile, the 50 DMA continues to slope downwards. Continuation of these trends could lead to the formation of a bullish crossover – another positive sign for investors in Ethereum (ETH).
But Weak Strength in Movement
For those considering whether or not to get in, this may just be the bargain opportunity you’ve been waiting for. However, given that the strength of movement (validated by the RSI) is currently weak, those not willing to take on too much risk should wait for stronger signals. The relative strength index or RSI for Ethereum (ETH) price is currently around the 40 index level.
The longer time resistance for the Ethereum (ETH) price lies at the $499 price level. The key support price level could be seen at $499, while currently ETH continues to flirt with its immediate support at $430.