This Bearish Pattern Limits Ethereum(ETH) Price Recovery; Keeping Holding?

Several daily candles with long-wick rejections indicate uncertainty among market participants. Moreover, the ongoing consolation formed a descending triangel pattern in the 4-hour time frame chart. A bearish breakdown from $1190 will intensify the bearish momentum to promote further downfall.

Key points:

• The Ethereum price is currently trapped in a no-trading zone
• The coin needs a triangle pattern breakout to encourage a directional rally
• The intraday trading volume in Ethereum is $14.5 Billion, indicating a gain of 32.6%.

Source-Tradingview

The Ethereum price turned sideways after the recent bloodbath in the crypto market initiated due to the collapse of FTX- crypto exchange, and panic selling in the market. The coin price currently trades at $1207 and has been reasoning within a descending triangle pattern for nearly two weeks.

The lower high formation with this bearish continuation pattern reflects a gradual decrease in bullish momentum. Furthermore, in response to this pattern, the prices eventually breach the neckline support to resume the prior downtrend.

The Ethereum price spread within the triangle has narrowed enough to be declared as a no-trading zone. Furthermore, the prices are close to the pattern’s apex suggesting the breakdown is near.

Thus, a daily candle closing below $1190 will signal the replenished bearish momentum, which could plunge the prices 10% down to rechallenge the $110 support. However, if the selling pressure persists, the altccoin will revisit the $1000 psychological support.

On a contrary note, a bullish breakout from the overhead trendline will undermine the bearish thesis and may drive the price to $1340.

Technical indicator

RSI: a minor bullish divergence in the daily-RSI slope reflect the increasing buying pressure at $1120 support. A bullish crossover above the midline will signal the market sentiment has turned bullish.

EMAs: the downsloping EMAS(20, 50, 100, and 200) indicates the potential swing would face multiple heads.

Ethereum intraday price levels

• Spot price: $1207
• Trend: bearish
• Volatility: Low
• Resistance level- $1275 and $1338
• Support level- $1190 and $1100