We previously warned that the king of cryptocurrencies could drop to $29,700 in the coming hours. And it’s happening as expected. BTC is currently finding buyers at $29,790. Since the king of cryptocurrencies failed to surpass $30,400, it is now at $29,790 and could further deepen with panic selling. So what awaits Ethereum (ETH) and others? Here are the details.
Ethereum (ETH) Analysis
Ethereum (ETH) price reached the highest level of the year on July 14. However, it quickly dropped, putting the entire previous upward movement at risk. The current price of ETH is trading below a critical intersection of resistance levels, and the reaction to this could determine the direction of future trends. Considering the recent negativity in the Bitcoin sector, a larger drop in price seems possible.
On June 21, the Ethereum price broke out of a declining resistance line. It then reached a local peak of $2,029 on July 14. It appears that this high level caused a breakout from the $1,940 resistance area. This is a significant resistance as it is both a horizontal resistance area and the 0.618 Fib retracement resistance level. Therefore, due to the breakout from the line and resistance area, it seemed that the ETH price was starting to reverse the upward trend that would take it to new highs. However, ETH soon fell below the $1.94 region, invalidating the previous breakout.
ETH and Altcoin Analysis
Altcoins, especially Ethereum, are expected to consolidate the $1,940 level as resistance. Technical analysis from the shorter-term six-hour timeframe does not provide a clear direction. Wave counting indicates that the ETH price completed a five-wave upward movement between June 15 and July 3. Since then, the price has fluctuated within an A-B-C structure.
However, it is uncertain whether the correction is complete or if the ETH price will complete another low. So far, the A:C waves have had a perfect 1:1 ratio, indicating that the correction is complete. However, if the price drops, ETH could decline to $1,790.
The negative sentiment across the cryptocurrency market is fueled by the upcoming Fed meeting. Despite positive recent data, the possibility of interest rate hikes remains high and the sentiment has not changed. Therefore, we may see similar declines until Wednesday evening next week.
