Ethereum Nears Key Bearish Triangle Apex: Breakdown To $2,160 Target Looms
August 13 2024 - 7:30AM
NEWSBTC
Recent trading activities reveal that Ethereum is approaching a
crucial point in its trading as it forms a bearish triangle
pattern, signaling a potential significant breakout. If the
cryptocurrency breaks below the lower boundary of this triangle, it
could lead to a sharp decline towards the $2,160 target. This
article aims to provide readers with a detailed technical analysis
of Ethereum’s price action, emphasizing the importance of the
bearish triangle pattern that has emerged on the charts. It will
also explore how this pattern indicates a potential downward move
toward the $2,160 support level. In the past 24 hours, Ethereum has
gone up by 2.11%, reaching around $2,642, with a market
capitalization of over $317 billion and a trading volume exceeding
$21 billion at the time of writing. ETH’s market cap has increased
by 2.32%, while its trading volume has surged by 33.62% Analyzing
Current Price Actions Within The Bearish Triangle On the 4-hour
chart, ETH’s price is currently trading below the 100-day Simple
Moving Average (SMA) and is moving closer to the lower boundary of
a bearish triangle, with several bearish candlesticks forming. This
indicates a prevailing bearish sentiment in the market and suggests
the potential for further price declines. Additionally, an
examination of the 4-hour Composite Trend Oscillator reveals that
both the signal line and the SMA line are currently in the
overbought zone, with the signal line attempting to cross below the
SMA line. This suggests that bearish pressure is building up for
the cryptocurrency, potentially resulting in more price declines.
On the 1-day chart, Ethereum remains below the 100-day SMA and,
with a single bearish candlestick, is approaching the lower
boundary of the bearish triangle. Given the current price action on
the daily timeframe, it appears that bearish momentum is
increasing, which could potentially lead to a price breakout.
Finally, the composite trend oscillator on the 1-day chart also
suggests a potential for continued bearish movement, with both the
signal line and the SMA line in the oversold zone, showing no signs
of crossing above. Potential Scenarios For Ethereum Following A
Breakout If Ethereum’s current trading activities lead to a
breakout below the bearish triangle, the price may continue to
descend toward the $2,160 support level. When the crypto asset
reaches this level and breaks below, it could lead to a further
bearish move toward other lower levels. However, if Ethereum fails
to break below, it might start moving toward the upper boundary of
the bearish triangle. Should the cryptocurrency break above this
upper boundary, ETH could continue to rise to test the $2,816
resistance range and possibly advance to challenge higher levels if
the price surpasses this resistance. Featured image from iStock,
chart from Tradingview.com
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