Ethereum creates a bearish reversal pattern after the inability to guard against the major losses of the aftermath of the rejection in the $250 region as we reported recently in our Ethereum price news.
It is important to note that the asset was slightly outperforming Bitcoin in the time which showed a major sign of strength. The independent momentum stalled as of late which led the analyst to believe that Ethereum creates a bearish reversal pattern. ETH could be forming a reversal pattern that could catalyze major downsides.
The history of Ethereum shows that the asset showed previously some signs of weakness of late stemming from the huge rejection that ETH faced earlier this week. The drop later was not so intense but the buyers were able to guard against the full-blown trend reversal. the current strength that the asset has might not be enough to catalyze any sharp uptrend as ETH shows more signs of weakness in the meantime. In addition to the bearish broadening wedge that the crypto gets itself into, analysts also pointed out that there’s an emergence of potential trend reversal formation.
At the time of writing, Ethereum started trading up by under 2% at a current price of $245, marking a huge upswing form the recent lows of $230 that was set during the bottom of the decline. ETH is now trading down slightly from the highs of $250 that was set during the peak of the uptrend. Although it has the ability to climb back to this level again which is a positive sign, analysts are also pointing out that it is currently caught within a bearish technical pattern. One analyst spoke about this and pointed out on the 4-hour charts saying that the cryptocurrency could be caught in a broadening wedge again:
“ETH / USD H4 TF- Ethereum, we could potentially see a Broadening Formation pattern play out here.”
The downside target on the chart sits on a $210 position and ETH could soon post a full trend reversal pattern if it declines from the current levels. A popular analyst spoke about it as well saying that he doesn’t expect this to play out but there is a possibility:
“4h ETH… not expecting a bearish reversal but def watching this closely,” he said while pointing to the chart seen below.
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