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
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.
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.
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.
Your opinion is important to us!