Ethereum (ETH) – Has set the stage for the next bearish wave after diving below the triangle patternPosted on Tuesday, July 12 2022 at 10:09 pm GMT+0000
The second-largest cryptocurrency Ethereum (ETH) has been gradually losing ground since last Friday, falling below the three weeks ascending triangle stretched from the June 18th bottom.
The bearish intersection between the 40-and 100-day simple moving averages is promoting further declines in the coin, while momentum indicators are showing that bears are pushing for the next downward movements. The Stochastic oscillator is exhibiting a negative charge and is falling into the bearish territory and the Momentum indicator is declining below its zero line.
Therefore, if sellers remain in the driver’s seat, forcing a closure below the pattern, they could initially squeeze the price towards the June 30th bottom and strong psychological number of 1,000 before challenging the important June 18th low of 880. A violation of the latter could be proved a tough blow for the coin, as it could in the aftermath fall to the target of the triangle at 700.
On the other hand, if buyers re-emerge and steer the price higher, canceling the recently activated pattern, they could march the price towards the twice-tested high of 1,275 which is residing along with the 40-day simple moving average. Clearing the latter, the price may then propel toward the late March 2021 inside swing low of 1,740, while higher, the gates will open for the May 31st high of 2,015.
In brief, Ethereum has set the stage for the next bearish wave after diving below the triangle pattern, but the sellers may wait for a dip beneath the 1,000 level to raise their exposure in the market.