The cryptocurrency market experienced another bearish day on 23 October after Bitcoin’s price fell by more than 7% in an hour, following which other altcoins also registered a not-so-significant decline. Ethereum was trading at $161.98, recording a fall of 2.90% on the 24-hour price chart, at press time. The altcoin has been struggling recently after registering its second death cross since inception, but the coin’s long term chart suggests that Ethereum is due for a bullish breach in the next 2-3 weeks.
1-Day Price Chart
Source: ETH/USD on TradingView
On the one-day price chart, Ethereum has been moving in a falling wedge pattern since July and looking at the chart, a breach from the pattern might occur in the next 2-3 weeks. The formation of a falling wedge is considered a bullish sign as a breach from the pattern can send Ethereum prices into much-needed green.
The EMA ribbon was acting as a resistance for the altcoin as prices remained under the ribbon. The price movement looked set to go over the ribbon, but yesterday’s fall brought it under the ribbon again.
Source: ETH/USD on TradingView
The MACD indicator went under after a bearish crossover on 18 October and since then, the bears have had an upper hand in the market. But with the falling wedge formation, the MACD line might see a bullish crossover in the next few weeks.
The RSI indicator showed that even though selling pressure was higher in the market, at the same time the indicator was also testing resistance at 34.9. Once the indicator touches that point, a bounce-back is expected, one which might put buyers in control of the market.
Conclusion
Ethereum is moving in a falling wedge pattern which is considered a bullish sign, even though the altcoin looked bearish in the short-term with bearish signs from the MACD and RSI indicators. A breach from the falling wedge pattern can provide much necessary relief to the altcoin.
