Ethereum prepares for another big move trading sideways over the past week as the consolidation makes it unclear in which direction will ETH go next. Let’s find out in the Ethereum price news.
ETH came about as a result of the lackluster price action which was started by Bitcoin over the past week. Analysts believe that ETH could be poised to see some notable downside if its unable to go higher in the days ahead. Ethereum prepares for another price move closely tracking Bitcoin’s price action ever since the crypto market endured immense volatility over the past week. This market wide-consolidation trend caused ETH to go over the $240 region and remaining unable to break through the resistance that remains between it and setting the fresh local highs.
Analysts are noting that the altcoin seems to be on shaky ground right now because of the existence of potential inverse head and shoulders pattern which the analysts are closely watching. One popular trader also noted that he believes the cryptocurrency is positioned to see some volatility repeating in the near term. He also said that the bulls are in favor and there is one level that could start an intense downtrend that is broken below. At the time of writing, Ethereum is trading up marginally around the $244 price which is around the same level it has been trading for the past week. Analysts do believe that there are some signs of underlying weakness as well.
One of these signs is the existence of a head and shoulders pattern that ETH formed which can be clearly seen on the charts. It is also important to note that this pattern will not be confirmed unless the cryptocurrency breaks below the $232 level and it could also be invalidated if the buyers propel it towards $250. One popular crypto trader explained in a recent blog post that he believes the cryptocurrency is stronger as long as it remains in consolidation above the $228 level. He noted that there’s plenty of resistance just above the current price level and it is currently being bolstered by the 200 and 360 moving averages:
“Price has since been consolidating below the trendline resistance, supported by short-term trendline support that formed on the bounce off of the 200 and 360DMAs. If we start to break down before that and fail to conquer the trendline resistance, I’d look for a retest of $228 as resistance to get short.”
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