Rectangle Pattern Points to 8% Jump

After the August 17th bloodbath, the Ethereum price went sideways above the $1600 psychological. For the past ten days, the daily chart has showcased multiple candles with long wicks and tails reflecting uncertainty among market participants. However, a consolidation following a major drop usually reflects a short breather for sellers as they continue the downward projection in the near term.

Also Read: OnlyFans Invests in Ethereum as Revenue Tops $1 Billion

Ethereum Daily Chart: Key Points

• The ETH price may prolong the consolidation phase until the range boundaries of $1700 and $1577 are intact.
• A bullish breakout from the $1700 barrier would trigger an 8% jump in price
• The intraday trading volume in Ether is $2.5 Billion, indicating a 22% loss.

Source- Tradingview

The daily time frame chart projects the ongoing consolidation in ETH price is confined between two horizontal levels of $1700 and $1577. This narrow range/rectange pattern reflecting no initiation from market participants can be marked as a no-trading zone, but its boundaries can be used to foretell the near future trend.

Currently, the Ethereum price trades at $1656, and with an intraday gain of 0.6, it’s heading back to the overhead resistance of $1700. If the bullish momentum rises, the coin buyers can break this psychological resistance to trigger a longer pullback in the prevailing downtrend.

The post-breakout rally could surge the price 6% higher to retest the breached support trendline as potential resistance. This flipped barrier could assist sellers in recuperating selling momentum and set the Ethereum price back on the correction track.

On a contrary note, if the anticipated pullback breaks above $1800, the sellers may start losing grip over the Ethereum coin.

Can ETH Price Fall Back to $1450?

Concerning the uncertainty and bearishness in the top two leading cryptocurrencies Bitcoin and Ethereum, the crypto sellers may have an upper and therefore, a higher possibility of a $1577 breakdown. Losing this support will instantly prolong the correction trend and plunge the altcoin value 8.5% down to $1450.

• Average Directional Index: The daily ADX slope at 41% reflects the correction that could be reaching maturity and therefore supports the potential pullback.
• Vortex Indicator: A wide gap between the VI+(blue) and VI-(orange) in a bearish alignment reflects the overall market trend remains negative.