Ethereum’s patterns set the stage for longs
Ethereum’s price has an extremely bullish bias due to formation of a descending channel on a higher time frame and the falling wedge on a lower time frame. The price of ETH is currently close to testing $160-$165 support. This support has been a major point since September 2018, breaking it could mean the bear season for ETH.
Ethereum has been collapsing since it hit a YTD high of $363. The current price of Ethereum was $172 and had a market cap of $18.7 billion.
The Current Scenario: Short Term
The shorter time frame for ETH indicated a bullish falling wedge pattern in play. Breaching this would suggest the price heading to the top of the channel and possibly breaching it. This would continue as the larger breach out of the descending channel. Since RSI is touching the oversold zone it shows that price is primed for a bullish breach.
The target for this pattern would $189. Further bullish momentum could push the price [in a longer time frame] to $240, $280, and the YTD ATH of $340.
The Probable Future: Long Term
The descending channel for Ether means that it will have a bullish bias when the pattern breaches. Moreover, it looks like the price has another leg down before it breaches. The downward drop could be stopped at $156 or $127. If it stops at the latter, which also happens to be the center of the channel, it could reverse from here and head out to breach the larger parallel channel. However, the drop-down to $127, although possible seems unlikely as the shorter time frame, as described above, indicates another plan for Ethereum.