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Ethereum’s price could recover as falling wedge takes hold

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Ethereum’s price was trading below the $150 support area, following the cryptocurrency market’s latest dip. At press time, ETH was down by 0.12% over 24 hours and was trading at $148.07, according to CoinMarketCap.

Ethereum 1-hour Chart

Source: ETH/USD on TradingView

The formation of a falling wedge pattern was recorded by Ethereum’s hourly chart, with the price oscillating between two downsloping trendlines. This was indicative of a potential bullish breakout in the near-term. The 50 moving average was above the 100 moving average after it sustained a bearish crossover on 1 December following the collective market slump. On the upside, the moving averages appeared to be converging and could be heading for a bullish crossover in the future.

Following an upside breakout after the closure of the wedge, Ethereum’s price might possibly climb near the 50 moving average, i.e., $149. If the positive trend continues and gains necessary momentum, ETH could possibly breach $151. While a trend reversal at this point was not predicted, the coin found support at $145-level.


Contradicting indications

Source: ETH/USD on TradingView

The MACD was still in the bears’ realm, with the signal line hovering above the leading line. The lines, however, appeared to converge. This might potentially mean a bullish phase for the coin in the future. The RSI was below the 50 median and was headed upwards. This suggested a high sell pressure among ETH investors. However, the upward movement of RSI could indicate a reversal of this trend.

Conclusion

A bullish breakout was projected from the pattern formation found on the chart. However, the indicators and the moving averages could resist the coin and stop it from climbing and breaching significant levels. If the bearish pressure continues, ETH bulls might find itself resisted at $149.


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Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.
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