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Saturday, October 16, 2021

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Why Ethereum Traders Should Be On The Watch For This




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After a spectacular start in August, Ethereum seemed to have settled on the charts. His weekly profit now stood at a low of 1% as buyers slowly walked away from the market. Since the pause came just before ETH tested a major price range of $ 3,450-3,600, there were a few ways its market could develop before the next up cycle. At the time of writing, ETH was trading at $ 3,192, down 1.7% in the last 24 hours.

Ethereum 4-hour chart

Source: ETH / USD, TradingView

The bulls have done well to keep prices above $ 3,000, but a bearish setup needed some negotiation. After August 7, higher highs were seen at $ 3,200, 3,270 and $ 3,330, while lower highs followed at $ 2,890, 2,980 and $ 3,000. The trend lines drawn along these points indicated a rising wedge pattern, a setup that exhibits greater chances of a breakout.




The inflection point of such a result could be around the $ 3,100 level, which is also close to the last band of the EMA tapes. A close below $ 3,100 could trigger a 7% decline towards the lowest point of the pattern at $ 2,890. To negate such a result, ETH would need to close above $ 3,330, which would indicate a higher high and a continuation within the pattern.

Reasoning

Multiple bearish divergences were detected on the ETH indicators. For example, RSI moved inside a descending channel and did not match the recent highs formed by the ETH bulls. A move below 40 would confirm a bearish turn. The Awesome Oscillator was in danger of spreading below the midline at the back of a bearish twin peak setup. Furthermore, the directional movement index suggested that the bears were on the cusp of control as the -DI inched towards the + DI.

Conclution

Ethereum didn’t seem to have the legs to climb above the $ 3,450 resistance at the moment. Its market was indicative of an incoming pullback and short traders should be on the lookout for a close below $ 3,100. On the upside, the projected pullback would be considered healthy in the long run.

This is a machine translation of our English version.

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TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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