Recent trading activities indicate that Ethereum is nearing a critical juncture in its trading, as it forms a bearish triangle pattern. This pattern suggests a potential significant market move. Should Ethereum break below the lower boundary of this triangle, a sharp decline towards the $2,160 target could ensue.
Ethereum has seen a 2.11% increase in the past 24 hours, reaching approximately $2,642. With a market capitalization exceeding $317 billion and a trading volume over $21 billion, ETH’s market cap has grown by 2.32%, while its trading volume has surged by 33.62%.
On the 4-hour chart, Ethereum’s price currently trades below the 100-day Simple Moving Average (SMA), drawing closer to the lower edge of the bearish triangle. Several bearish candlesticks have emerged, pointing to a bearish sentiment within the market and hinting at potential price drops.
Furthermore, a look at the 4-hour Composite Trend Oscillator reveals that both the signal line and the SMA line reside in the overbought zone, with the signal line attempting to cross below the SMA line. This setup indicates mounting bearish pressure on the cryptocurrency, possibly leading to further declines.
On the 1-day chart, Ethereum remains below the 100-day SMA. With a single bearish candlestick, the price approaches the lower boundary of the bearish triangle, signaling strengthening bearish momentum that might provoke a price breakout.
The composite trend oscillator on the 1-day chart also paints a bearish picture. Both the signal line and the SMA line are in the oversold zone, showing no signs of upward crossing.
Should Ethereum break below the bearish triangle, the price could descend towards the $2,160 support level. A breach of this level might trigger further bearish movement to even lower levels.
Conversely, if Ethereum fails to break below, it might instead head towards the upper boundary of the bearish triangle. A break above this upper boundary could propel the cryptocurrency to test the $2,816 resistance range, with the potential for further advances if it surpasses this barrier.
Ethereum is currently trading at $2,623, presenting a pivotal moment for the cryptocurrency’s short-term future.
