Ethereum Prints a Rising Wedge That Could Cause a Pullback to $1,750
With respect to technical analysis, the team at Santiment has identified an ongoing rising wedge on the Ethereum chart that foreshadows a price dip to $1,750. Their analysis can be found in the following statement and accompanying chart.
After bouncing off the $1750 levels in late June, ETH appears to have formed a rising wedge…which is usually a bearish sign for continuation of prevailing trend.
Given that the overall trend is bearish, it’s very likely to break down from the rising wedge and continue towards breaking the $1750 levels.
EIP1559 Could Cause a Bounce, But It Might be a Dead Cat Bounce
In the concluding remarks of the elaborate report, the team at Santiment went on to caution that Ethereum could experience a dead cat bounce leading up to, or after the implementation of EIP1559. They explained this scenario as follows.
It’s all speculative at the moment and no one will really know how the market will react to the implementation [of EIP1559]. It could be “buy the rumour, sell the news”.
At the end of the day…. once the money making opportunities dry out (be it in degen coins or legit projects), participants will eventually leave, just like what we seen in 2017/18’s cycle….
In summary…ETH’s price action isn’t looking all that good, setting it at risk of yet another leg down. But if we do get a bounce, it could be a dead cat one if nothing changes.