Ethereum price analysis: ETH/USD looks subject to potential sharp drop lower, should the price breach a rising wedge, $670-680 support
- Ethereum nursing losses of 2.5% on Monday, with potential of another drop given rising wedge pattern.
- Near-term support seen at $630, $500 and mid $300 range, resistance seen at $800, $915.
The Ethereum price is seen down over 2.5% on Monday, losing ground as selling pressure remains firm below $700 level. Further easing in the prices for major altcoins remains very much evident, as has been the case since the start of May.
ETH/USD lost some ground on 16th March, to break out to the downside from the long-running ascending trend line, Ethereum then made a retest underneath this line on 5th May, before being rejected. The market has since remained in a bearish trend, losing over 20% following this retest.
Technically, ETH/USD is moving within a rising wedge pattern as seen on the daily time frame, this could be subject to a sharp drop lower if breached. Support is currently tracking at the lower trend line of the mentioned pattern, seen at $670-680. Should the pressure pile on, next levels of support are eyed at; $625, $500 and then the mid $300 range. Resistance to the upside seen at $800 and then $915.
ETH/USD daily chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
