The second-largest crypto by market capitalization broke the daily rising wedge pattern yesterday. This is why we believe that Ethereum (ETH) is “officially” bearish. The breakout of this chart pattern down means that a decline is imminent. According to TagadoBTC, if the support around $1280 does not hold, this crypto is likely to reach $760.
Ethereum (ETH): the bearish movement is likely to continue
The breakout of the rising wedge pattern says a lot about the future trajectory of Ethereum. As a reminder, the beakout to the bottom of this figure means that the asset in question is “ready” for a bearish move. Usually, there will first be a small “pull-back” before the real descent. Thus, we can estimate the same scenario on Ethereum, which confirms that it is bearish.
According to TagadoBTC, the target is around $760. However, it points to the existence of support around $1280. This is indeed a resistance-turned-support that should cause the price of Ethereum (ETH) to bounce back. Therefore, if this level does not hold, the value of this crypto may reach $762.
Support around $1280: the last bastion?
As the US session opens, Ethereum (ETH) is effectively bouncing off the $1280 support. A 6% jump that does not go unnoticed by day traders. To believe that this is the last bastion for Ethereum (ETH), which seems bearish since The Merge. But not that, during this slight rise, the price breaks above $1350. This is visible to very short-term traders, as well as scalpers. It is indeed a very important break called “BoS” or “break of structure”. This breakout means that Ethereum is going to be bullish, at least in the short term. Moreover, if the price breaks the level around $1480, a bullish movement will be confirmed in the short term with a target around $1680. It will be an opportunity topurchasebut it remains a risky position.
Thus, the support around the $1280 area appears to be holding. However, the week has only just begun. Especially since the market tends to make the lowest of the week between Tuesday and Thursday. Is it possible that Ethereum will reach $762? It’s possible. With the statements of the SEC in relation to PoS, it is quite likely that Ethereum is bearish for a while.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
