After a slight monthly increase in July, ether and altcoins started the new month hesitantly. Even the US stock markets started on a cautious note. Ether’s price is currently down by almost 7%, but the volumes have swelled up by around 28% over the day. Quarterly Ethereum futures contracts, scheduled to expire in December 2022, have slipped into retroactive effect, a state opposed to contango, where the futures price becomes lower than the spot price. On the one hand, ETH’s current spot price is higher than the year-end outlook and looks like a bearish sign. However, conditions surrounding the current negative spread between Ether spot price and futures price suggest that traders could be bullish on ETH.
At the time of writing, ETH was trading at $1,575.
ETH was trading in a range from $1,000 to $1,275. The asset gave a breakout above the range and rallied almost by 40% and made the high of $1,784. ETH faced stiff resistance at key level of $1,700 – $1,750 (lows of previous double bottom pattern) and witnessed some profit booking. On a daily time frame, ETH is forming a ‘Lower High Lower Low’ pattern but with low volumes. The asset can take support around $1,500 (20 Day Moving Average). If it holds and sustains the support then we can expect the bulls to resume the up-move.
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