Today, we spot a bullish sign on the chart of the Ethereum price: a higher low. Admittedly, it is not easy to see it, but it is visibly there. We have indicated the two lows of June with the red circle, and the second circle is slightly higher than the first one. That is what we mean with a higher low.
A higher low is an important event in any market, any asset, any stock and any cryptocurrency price chart. It indicates that selling pressure is fading. That is a bullish sign.
The Ethereum price chart has made a bearish formation since mid June, with lower peaks since it topped right below 400 USD. That is not what Ethereum bulls would like to see.
We wrote last week why it was critical for the price of Ethereum to hold 200 USD. So far, we see a stabilization above 250 USD, and, if that holds, it would be great, as that suggests we have entered a consolidation period. Consolidating gains is a good thing, not a bad thing, that should be clear.
For now, we believe Ethereum acts as it should: process the gains of the year by stabilizing on a relatively high price level, setting a higher low, and, hopefully for Ethereum bulls, remain firm above 250 USD. If that consolidation continues, it is a matter of time until the next leg higher starts!