No sharp moves were seen on Ether this week. The price of this crypto seems, indeed, to follow a compression pattern. After the breakout of this figure, expect a volatile week. Already at -75% from its all-time high, Ethereum could plunge further.
Ethereum is following a downtrend line
Calm has settled over the crypto market over the past five days. Of the two largest cryptos by market capitalization, there had been very little movement. Indeed, the king and the eternal second have not experienced any significant variation since Monday. In the case of Ethereum, its price remained between $1170 and $1290 while being in a slight downtrend. This is a price range, predicted to contain the price this week. Moreover, it looks like the price of ETH is compressing inside a symmetrical triangle. Thus, we are looking at more volatility next week, which will lead to the breakout of the triangle.
Also note that the upper part of this figure lines up with a trend line. This line has formed since August 14 and has been hit several times. And currently, the price of Ethereum is following the path of this oblique, bearish resistance. At this rate, we can probably see ETH hitting $1000. But before that, a slight rise towards $1420 will take place. This is a relevant level that will eventually serve as resistance for the price.
Goal $1000?
Indeed, the symmetrical triangle usually precedes the continuation of a trend. Which leads us to a conclusion that ETH will continue to go down. Moreover, the formation of this figure possibly confirms the scenario of a previous ether article. If this scenario is confirmed, we can consider the breakout of the triangle upwards. This rise will allow the price to reach the area around $1425. This level will then serve as resistance, sending Ethereum price back into an explosive downtrend. Considering the fact that there is no major support to rebound the price, one could bet on this psychological level.
Indeed, this is an ideal level for buyers to place their buy orders. In the event of a rebound on this support, we can consider the end of the long downward trend on Ethereum. This will then be followed by a possible bullish rally towards $2000.
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