Volatility on Ethereum (ETH) remains high on Thursday. After seeing an 8% rise yesterday, the second largest crypto is falling again. Its price is thus approaching the daily support of $1250. But despite this volatility, it seems that the price of Ethereum still remains inside the $1410 and $1250 range. A break above this range may be the long-awaited signal for a bullrun.
Ethereum (ETH): formation of a range between $1410 and $1250
At the start of the day today, Ethereum (ETH) was able to break above $1300. But that did not last long since at present, this crypto is trading at $1290. Its price is thus gradually approaching yesterday’s low around $1250. All of this gives a “ping-pong” image on the chart. But it should be noted that the price of Ethereum remains in the $1410 and $1250 range.
This week is, in fact, marked by high volatility since ETH varies by 10% in just two days. Between Monday and Tuesday, the second largest cryptocurrency was up 9%. Then a drop of 10% between Tuesday and Wednesday. After that, the bulls push the token to a high of $1,351 earlier today.
At the close of the London session, Ethereum fell 3%, approaching the bottom of the range around $1250. Note that this bottom of the range is also a major support in Daily. Indeed, the price rebounded from this support on September 21, and since then, the price of ETH has not been able to create a trough lower than this level. Then, the high formed on Tuesday ($1400) was unable to break above the resistance around $1410. This is why one would think that it is a newly created range on Ethereum.
A bearish pattern in H1
As shown in the image above, an ETE (shoulder-head-shoulder) can be seen forming. This is a figure that indicates a potential decline in the market. In addition, the neck line, or “neckline” was broken by yesterday’s descent. Thus, this is a fairly relevant bearish signal. Sure enough, after hitting $1348, the price of ETH drops again, which is just the logical outcome of this figure.
It could be that this figure is an indication that the price of Ethereum will break the range down. On top of that, the RSI level is approaching 30: the oversold territory.
At the moment, the second crypto by market capitalization has not shown its true long-term direction. The best thing to do would be to observe if the Ethereum price breaks the range down, or up. But based on this bearish figure, it is more likely that this cryptocurrency will continue its “bearish move”.
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