Connect with us
Active Currencies 14901
Market Cap $2,435,265,801,661.30
Bitcoin Share 51.23%
24h Market Cap Change $5.09

Ethereum’s consolidating price may witness a bullish break following the formation of descending channel

2min Read

Share this article

Since the end of June, Ethereum’s price has been progressively declining as the bulls have failed to pick up pace after their 3-month run. ETH’s valuation dipped below the support of 239.43 and at press time, it was acting as a major resistance. Over the past week, the valuation witnessed another slump down to $163.9, but signs of recovery were found in the charts. Ethereum experienced a growth of 2.94 percent over the past 24 hours.

4-hour chart

Source: Trading View

On the 4-hour chart, it was observed that a prominent descending triangle pattern was taking shape. The price movement of ETH adhered to the pattern’s line and an expected bearish breakout was recorded on 14 August. The price took a hit and the valuation dropped down to $181.44. The long-term support of $207.45 had turned into major resistance in theĀ  charts.

Now, at press time, Ethereum’s ardent followers can afford to be optimistic about an impending price pump as a prominent descending channel was transpiring in the market. The lowers highs formed in the pattern bounced off the trend line a few times and the decreasing volume conform to the validity of the pattern. An impending bullish breakout could rally the price to retest the resistance at $195.07 and further momentum may assist Ethereum in breaching the $200 mark.

6-hour chart

Source: Trading View

The 6-hour chart for Ethereum was also indicative of a bullish breakout as the pattern formation of a falling wedge was evident. The analysis indicated that the price might decline a little further till $160, but a breakout should breach the $200 mark in the next two weeks.

The MACD indicator also implied a bullish trend for the coin as the blue line completed a crossover with the red line. The Relative Strength Index or RSI suggested that traders were back in the market as the line hovered over the 60-mark.

Conclusion

After a week of consolidation under $180, the trend may flip soon for Ethereum as the 4-hour chart and 6-hour chart displayed prominent patterns which suggested a bullish breakout for the 2nd largest virtual asset in the market.

Share

Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.