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Will This Bearish Pattern Drive the Price of the Ethereum Coin Below $1200?


Furthermore, the likelihood of a price rebound is diminished because this decline struck a low level like the 0.786 Fibonacci retracement level. The coin chart also demonstrated that the likelihood of a protracted correction increased when an inverted pennant pattern formed




02 Oct 2022 By : COIN GABBAR
Will This Bearish Pa

After the sell-off in the second and third weeks of September, the price of Ethereum fell to a support level of $1230.

Furthermore, the likelihood of a price rebound is diminished because this decline struck a low level like the 0.786 Fibonacci retracement level. The coin chart also demonstrated that the likelihood of a protracted correction increased when an inverted pennant pattern formed

For the past two weeks, the price of Ethereum has been held captive in a no-trading zone. The July-August rebound will be hampered by the $1230 breakdown. The $7.5 billion in intraday trading volume for Ethereum indicates a 47% loss.

The continuing bearish momentum is accelerated by the inverted pennant pattern, a continuation pattern. Theoretically, the pattern technical set-up provides a brief pause in which price reverberates within two convergent triangles that resemble a symmetrical triangle.

As a result, the price of Ethereum, which fluctuates between $1400 and $1230, might be viewed as non-trading. Furthermore, the high wick rejection on both sides exhibits considerable market sentiment volatility. The price of the coin is at $1323, down 0.4% from yesterday.

The altcoin should retest the lower trendline for a subsequent breakdown attempt if there is persistent selling. This pattern and a buying opportunity for traders will be initiated by a four-hour candle falling below the support trendline.

On the other hand, a potential relief rally may push the Ethereum price to $1550 resistance if the buyers are successful in breaking the pattern's resistance trendline.

Technical Indicator

EMAs: A bear trend is present when the 20, 50, 100, and 200 EMAs are downsloping. Additionally, the 20-day EMA closing close to the coin price may help sellers resume the current decline.

MACD indicator: Despite the bearish crossover, the MACD and signal line's inability to provide enough spread suggests that traders are finding it difficult to sustain prolonged buying. Additionally, these slopes below the midline imply a pessimistic outlook overall.

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