Briefly –
- The recent rejection sent ETH back to hunt higher supports, preferably over $2,000.
- The ascending wedge pattern indicates that the token is in an 11% retreat towards $2,000.
Ethereum trades in the red territory after the previous upticks that had it rising near $2,400. Other alternative coins gained substantially as the leading alt gained ground between $1,730 and $2,400.
Probably the asset saw the bearish dominance after failing to close over the $2,400 mark as profit-takers joined the market. While writing this content, Ethereum hovers at $2,176 after losing about 7% since yesterday.
ETH to Retreat to $2K
On Monday, the crypto market enjoyed massive upticks that started at the end of the previous week. Though the gains were remarkable, ETH failed to sustain the upswings.
It looks like fundamentals failed to match the massive price actions, or investors marketed the news quicker. Either way, the ETH network has dealt with corrections before. Keep in mind that BTC balances near $37K after surging to near $40K at the start of the week. Ether had to retrace due to its correlation with Bitcoin.
However, near-term technical indicators show that Ether will endure the correction for the short term. Keep in mind that the MACD prints a sell sign on the 4-Hr chart. Also, the 12-day EMA crossed beneath the 26-day exponential moving average (EMA). However, the asset has chances of a continuous correction as MACD moved towards the mean-line.
ETH/USD 4-hr Chart
The inclining wedge design on the 4-hr chart indicates bearishness. That is why Ether might see the 11% projected plunge. Keep in mind that the pattern came amid the proceeding upside movements. The formation might be long-term or short-term, depending on the duration it took to form. The support and resistance zones appear to converge as the wedge pattern matures.
Ethereum has to hold over $2,100 to avoid the $2,000 drop or the targeted 11% fall. That way, bulls can aim back towards $2,400 and test $3,000 later.
Intraday Levels
- Spot rate – $2,180
- Trend –bearish
- Volatility – high
- Support – $2,100 and $2,000
- Resistance – $2,400