Ethereum seems to be at a critical juncture in its trading activities, as it forms a bearish triangle pattern on the charts. This pattern suggests a potential significant breakout, with the cryptocurrency possibly declining sharply towards the $2,160 support level.
In the past 24 hours, Ethereum has experienced a 2.11% increase, reaching approximately $2,642. The cryptocurrency boasts a market capitalization exceeding $317 billion and a trading volume of over $21 billion at the moment. Despite these figures, the market cap has risen by 2.32%, while the trading volume has surged by 33.62%.
On the 4-hour chart, Ethereum’s price is currently situated below the 100-day Simple Moving Average (SMA) and is edging closer to the lower boundary of the bearish triangle. Several bearish candlesticks have formed, signaling a prevailing bearish sentiment in the market and hinting at potential price decreases. Moreover, scrutiny of the 4-hour Composite Trend Oscillator reveals that both the signal line and the SMA line are positioned in the overbought zone, with the signal line on the verge of descending below the SMA line. This indicates an accumulation of bearish pressure for Ethereum, potentially leading to further price drops.
On the 1-day chart, Ethereum remains positioned below the 100-day SMA and is nearing the lower boundary of the bearish triangle, with a solitary bearish candlestick visible. The current price action on the daily timeframe suggests an escalation in bearish momentum, potentially culminating in a price breakout. Additionally, the composite trend oscillator on the 1-day chart also supports the likelihood of ongoing bearish movement, as both the signal line and the SMA line reside in the oversold zone without any signs of crossing above.
If Ethereum’s trading activities result in a breakout below the bearish triangle, the price could further plummet towards the $2,160 support level. Should the cryptocurrency breach this support level, a deeper bearish trend might ensue. Conversely, if Ethereum fails to breach the lower boundary of the triangle, it may commence an ascent towards the upper boundary. A breakout above this upper boundary could propel ETH towards testing the $2,816 resistance range and potentially pushing for higher levels beyond that resistance point.
Leave a Reply