The price of Ethereum is poised for a break to the upside in the short term

Ethereum price

The price of Ethereum is down -16.9% at the time of writing and has begun to capitulate on the macro level in the past 7 days.

Ether has registered -24.2% in the last week , so can there be any hope of relief in the short term?

TradingView ‘s Solldy chart below illustrates their belief that ETH is set to break to the upside in the near term.

It is also possible to see that Ethereum is testing long-term support which dates back to early April with lots of trend line touches. 

ETH is also testing the 200-day MA (moving average) for the first time since April 23, 2020 following the ‘covid-crash’ black swan event. This is not a very bullish indicator for the Ether bulls and there is still more bearish news.

Furthermore, the RSI on Ether is also at its lowest levels encountered in March 2020.

While Ethereum enthusiasts are hoping the EIP 1559 will go live next month as planned and raise the price, a lot will depend on bitcoin and the macro environment of cryptocurrencies. 

Ether is + 94% versus BTC for the past 90 days, but bitcoin’s dominance [44.4%] is on the rise. Ether marks -6.5% against BTC in the last week and Ether dominance is 16.4%.

Ether’s 52-week range is $ 216- $ 4,352.

Ethereum really needs bitcoin to stabilize or turn upside early to stay above $ 1,760. 

Bitcoin is showing its lowest levels on the RSI since March 2020 [the covid crash] and could drag the rest of the market down with it.

If $ 1,700 is breached to the downside, there is not much historical resistance that can be maintained on the ETH chart until the previous ATH of $ 1,448.

ETH closed the daily candle on Monday at $ 1,892. 

The price of AAVE

AAVE is -66% since it hit its all-time high on May 18 of $ 661.69.

The toke n AAVE is -24.4% at the time of writing and AAVE is further proof of how homogeneous the cryptocurrency market still is. This very nascent sector is still largely at the mercy of bitcoin’s price action and many altcoins sold off on Monday following bitcoin’s lead once again – AAVE was not ruled out. 

As can be seen in the graph above, AAVE also appears to be in the middle of the Wyckoff collection. Jos1101 ‘s chart on TradingView implies that AAVE may be in the process of moving from phase D to phase E of the model. 

With BTC’s pattern looking remarkably similar, there could still be some further downside for the cryptocurrency market ahead of the Wyckoff Accumulation spring phase and some price relief. 

If AAVE can put together some bullish momentum and get back to $ 400, there is a case for the bulls to break out there and feel better about the near-term outlook.

AAVE’s 52-week range is $ 0.11- $ 655. 

Monday’s daily candle closed at $ 213.20.

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