Ethereum price analysis: awaiting range break
15:00, 22 July 2020
Ethereum continues to trade in a narrow price range, as the second-largest cryptocurrency by market capitalisation struggles to find a medium-term trend.
Ethereum price analysis shows that a directional breakout will occur once price moves away from the $217 to $250 price range.
ETH/USD medium-term price trend
The ETH/USD pair has been trading in an increasingly narrow price range as a number of top coins continue to suffer from a lack of trading volume and volatility.
Ethereum may be waiting for Bitcoin to stage a decisive technical breakout from the $8,800 to $9,475 price range, before deciding on its next major move.
Ethereum technical analysis shows that a major trendline breakout will take place if bulls move the price above the $250 level.
The daily time frame shows that the ETH/USD pair has been trading within a large triangle pattern since 2019. A move above the $250 level would cause a bullish breakout from the triangle pattern.
According to the size of the potential triangle pattern breakout, the ETH/USD pair could rally towards the $480 level.
Traders should note that the $300 and $370 level offer strong technical resistance for the ETH/USD pair, prior to the $480 level.
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ETH/USD short-term price trend
Ethereum technical analysis shows that the cryptocurrency only has a short-term bullish bias while the price trades above the $240 level.
The four-hour time frame currently shows that a bullish inverted head-and-shoulders pattern has formed.
ETH/USD bulls need to move the price above $250 to ignite the bullish reversal, while sellers need to move the price under $217 to invalidate the pattern.
According to the size of the reversal pattern, the ETH/USD pair could rally towards the $285 level if the $250 level is overcome.
If the ETH/USD pair moves under the $230 level, sellers may try to move the price under the $217 level to invalidate the pattern.
ETH/USD technical summary
Ethereum technical analysis shows that the ETH/USD pair will stage a major technical breakout once the $217 to $250 price range is broken. A move above the $250 level would be a positive medium-term development.