Published 9 hours ago
The Ethereum price shapes into a cup and handle pattern in the daily time frame chart. During its formation, the coin price displays a U-shaped recovery i.e., a “cup” shape, followed by a short-term consolidation that does not surpass the previous high, forming a “handle.” In theory, the handle acts as a break period before the coin resumes its uptrend. However, with the increasing uncertainty in the crypto market, the ETH price has been stuck within this consolidation phase for over two weeks..
- The formation of the Cup and Handle pattern implies that the coin is likely to experience a price increase in the near future.
- A bearish breakdown below $1500 could undermine this bullish theory
- The intraday trading volume in Ether is $7.7 Billion, indicating a 13.6% loss
With the upcoming FOMC meeting and several other global events, the ETH price prolonged the handle formation of the cup and handle pattern. As a result, the coin price struggling with uncertainty resonates between $1682 and $1506 over the past two weeks.
Thus, with the expectation for a highly volatile phase in the crypto market, the ongoing range should be considered as no trading zone. Therefore, the traders looking for an entry opportunity should wait for a breakout from either of the mentioned levels.
Thus, a breakout from the $1682 ceiling will trigger the bullish pattern and resume the prior recovery. In ideal bullish conditions, this technical setup could lead to a price rally 40% higher from the breakout point to hit the $2400 mark.
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On a contrary note, a daily candle closing below $1500 would weaken the bullish thesis and may initiate a correction phase to $1350 support.
Moving Average Convergence Divergence: The MACD indicator implies the momentum and trend direction of an asset and offers additional confirmation on a particular strategy. Thus, a bearish crossover between the MACD(Blue) and Signal(Line) hints at the exhausted bullish momentum and the possibility of a prolonged consolation phase.
EMAs: the 20-and-200-day EMA wavering near the $1500 mark, trying to prevent support breakdown
Ethereum Coin Price Intraday Levels-
- Spot rate: $1569
- Trend: Bullish
- Volatility: Medium
- Resistance level- $1680 and $1800
- Support level- $500 and $1420
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.