Ethereum Price Analysis: ETH/USD Creeps Closer To A Falling Wedge Pattern Breakout
Ethereum’s shallow recovery culminates in mundane sideways trading under $180.
A falling wedge pattern breakout lingers amid hope for an end of the year rally.
Ethereum price remained lethargic over the weekend session. The suppression experienced forced its way under the key support at $170. However, the congestion of buyers above $169 gave way for a shallow recovery. ETH/USD remarkably forged towards $180 but the momentum fizzled out at $178.
A broader look at the chart in the daily range clearly shows a bullish picture. The price has also formed a higher low pattern from September’s devastating lows around $151. Despite the short-term uptrend, Ethereum has been capped under $200. Besides, the 200 Moving Average (MA) is standing in the line of attack currently at $183.
ETH/USD daily chart
The Impeding Falling Wedge Pattern Breakout
A falling wedge pattern spotted on the daily chart is lagging a breakout. This pattern is used to signify a reversal in technical analysis. The falling wedge usually occurs in an extended downtrend. A break above the upper descending trendline coupled with a high volume and other technical indicators usually culminate in impressive gains. In this case, we could see Ethereum approaching $200. Moreover, such a move will shift focus on the upside towards $300 amid the lingering end of the year surge.
Short-term Technical Picture
From a short-term perspective, Ethereum price has a bullish bias. The Moving Average Convergence Divergence (MACD), for instance, is holding tight onto the zero line. The non-existent divergence and the horizontal movements suggest that the price will continue to trade sideways.
On the other hand, the gap between the long-term 100-day MA and the 50-day puts emphasis on the prevailing bears’ grip. In addition to that, the shrinking volume shows that action will be limited to either side. As far as support is concerned, $170 is a key zone likely to prevent short-term declines. Further declines will find support at $170 while the major support is observed at $150.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.