Ethereum (ETH) Consolidates Near $2,500
Shain Vernier • 2 min read
It’s a whipsaw Friday season on the cryptocurrency markets, headlined by a modest rise in Bitcoin (BTC). With only a few hours left until the weekend session, Bitcoin BTC (+0.5%), Ethereum ETH (-2.0%), Litecoin LTC (+2.30%), and Polkadot (-2.8%) are trading mixed. For now, sentiment is neutral as the trading week winds down.
All in all, it has been an eventful open to June’s action in the cryptosphere. Values have stabilized after the May sell-off with investors looking toward the future. However, the regulatory drums are beating loudly, as the U.S. Congress and Commodity Futures Trading Commission (CFTC) have turned their attention to crypto. In addition, China has banned cryptocurrency mining in two more provinces and the U.S. Securities Exchange Commission (SEC) is continuing its litigation against Ripple XRP. So, although things appear to have quieted down, there are certainly storm clouds on the horizon for cryptocurrencies.
In the case of Ethereum, investors are moving forward with caution. Following last month’s flash crash to $1700, bidders have stepped in and run prices north to $2,500. Now, the markets are taking their time in moving ETH off its perch at $2,500. The past three weekends have been flat or negative for Ethereum; let’s pull a chart for the ETH/USD and see if we can spot a trade or two.
Ethereum Consolidates At $2,500
Since the hard test of $1700 back on 23 May, Ethereum has traded a bulk of its volume between $2850 and $2350. When will ETH break out?
Bottom Line: For the time being, Ethereum is in a heavy consolidation pattern near $2,500. If the recent bearish weekend pattern holds, I’ll be looking to buy ETH from $1800. With an initial stop loss at $1425, this trade produces $375 (20.8%) on a standard 1:1 risk vs reward ratio.