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Ethereum short-term Price Analysis: 14 September

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Source: Pixabay

Disclaimer: The findings of the following article attempt to assess Ethereum’s price trends and the direction of it in the near-term

With the DeFi bubble cooling off, the situation has started to go sideways again. The prices of Ethereum and even Bitcoin are now moving within certain ranges, a development that is good for scalping. In fact, while Ethereum broke out of a falling wedge recently, it was soon stopped by the bulls.

With ETH noting a price depreciation of over 5.4% on the charts over the last 24 hours, the cryptocurrency’s weekly gains are now close to being wiped out entirely.

Ethereum 1-hour chart

Source: ETHUSDT on TradingView

From the attached chart, we can see that ETH’s price has broken out of the larger falling wedge. However, the price hadn’t hit target 2 yet. This intermediate surge could be the bulls attempting to revive the cryptocurrency’s price. However, it only turned out to be a pit stop for the bears, before they continued their clobbering.

The consolidation turned upside, forming a pennant/rising wedge, which when looked at with the previous price pattern, formed a continuation pattern. Hence, the targets for the price include $356.96, which was 2.83% away from the entry point [$367.31], at press time.

Stop-loss can be set up at $375.13, which was 2.13% away from the entry point. The take-profit level can be at two points, the first at $356.96 which would yield an R of 1.32. Alternatively, one could wait for the price to drop all the way down to the next strong support level at $336.25, which is a drop of 8.49% from the entry point. This would provide an R of 3.99.

The interesting fact about the second target is that it is the 61.8%-Fib level. Also, to be on the safe side, one could take part in the profits at $346.33, which is the 0.5-Fib level. This trade would provide an R of 2.68.

It should also be noted that if the price of ETH on a shorter timeframe changes, the rising wedge could turn into a channel too.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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