The price of Ethereum falls below $ 700, will the price strengthen?


Crypto traders are a having another slightly frustrating and directionless session, as the major digital currencies are all trading in narrow short-term ranges. Trading activity declined too, as volumes are down across the board, and the technicals are still not decisive. The weakness of Bitcoin and the strength of Ethereum are balancing the segment out, while the ongoing broader correction of the April run-up also weighs on the market.

We still advise traders to wait before entering new positions here, as although the overbought reading on the daily charts are mostly cleared, the corrective patterns are still intact, and the short-term trend signals remain neutral. On a positive note, the crucial support levels are holding up in the markets of leaders, and even though the consolidation could continue, odds still favor another leg higher in the coming weeks.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade below the key $8400-$8700 zone, clearly underperforming ETH and the other relatively strong coins. Until the weakness persists, traders should stay away from taking on new positions, even as the setup is getting more favorable for long-term investors, as the long-term momentum indicators are neutral again. Strong support is still found between $7650 and $7800, while resistance is ahead between $9000 and $9200, $10,000, and $10,500.

ETH/USD, 4-Hour Chart Analysis

Ethereum is also stuck in a corrective pattern, although the coin is well above the recent lows, still trading right at the $700 price level. The coin is still on a neutral short-term trend signal, despite its relative strength, with strong support between $625 and $645 and between $555 and $575, while targets above the primary resistance zone between $735 and $780 are ahead at $845, $900, and $100.

Will Ethereum’s Strength Persist?

ETH/BTC, 4-Hour Chart Analysis

ETH’s rally in Bitcoin terms kick-started the advance in altcoins, and it the pair rose as high as the 0.085 resistance following the breakout that we pointed out in April. Now, the trend seems to be weakening, as the pair experienced several failed breakouts above resistance, and a deeper pullback could be ahead if ETH fails to move above 0.085 in the coming days.

As the pair is crucial for the broader market, traders should remain cautious until the next momentum move, as choppy, hard to trade conditions could continue to dominate.

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