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On August 2nd, the Ethereum price gave a bearish breakdown from the support trendline of the megaphone pattern. This breakdown was supposed to extend the prevailing correction phase but instead, the price action went sideways indicating a lack of conviction from the sellers. Moreover, the buyers took advantage of this uncertainty, and push the price back into the chart pattern, signaling a bear trap scenario. Should you buy now?
Also Read: Ethereum Price Doldrums: How to Survive Second Stage Capitulation
Ethereum Price Daily Chart
- The ETH price reclaiming the support trendline set a bullish upswing of 8%
- The recently reclaim daily EMAs(20, 50, 100, and 200) could offer additional support to crypto buyers
- The intraday trading volume in Ether is $6.9 Billion, indicating a 16% gain.
Source- Tradingview
Amid the increasing uncertainty in the crypto market, the ETH sellers failed to provide a suitable follow-up to the support breakdown of August 2nd. The coin price has nearly a week of period to push the price lower, the sideways action indicated weakness in bearish momentum.
As a result, the buyers eventually raised the coin price higher with a daily candle closing above the breached trendline. This breakout marked the prior breakdown as a fake or trap, offering market bull a better opportunity.
With an intraday gain of 0.53%, the coin price provides a suitable follow-up, suggesting a potential upswing in the near future.
[converter id=”eth-ethereum” url=”https://coingape.com/price/converter/eth-to-usd/?amount=1″]
Can ETH Price Recuperate Bullish Recovery?
The bear trap scenario offers buyers to counter with a stronger comeback. If the Ethereum price currently trades at $1869 and if it manages to sustain the reclaimed support, the buyers could drive the price 8% higher to hit $2020, followed by $2137.
- Exponential Moving Average: The Ethereum price back above the daily EMAs(20, 50, 100, and 200) provides readers with an extra edge.
- Relative strength index: The daily RSI slope rises above 50% indicating increasing bullish momentum.
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