Ethereum Price Prediction: ETH technical pattern’s correction emerges as $1,800 beckons
Ethereum price has corrected from the recent upswing to $2,300. The gains gain after the previous week’s dip to $1,700. Nonetheless, bulls lost steam leading to the ongoing retreat.
At the time of writing, Ether teeters slightly above $2,000. Losing support at $2,100, highlighted by the 100 Simple Moving Average (SMA) on the four-hour chart, has been detrimental to the smart contract token.
Ethereum price poised for a downswing to $1,800
The exact four-hour timeframe brings into the picture a short-term rising wedge. This pattern is highly bearish and often appears in an uptrend. A trend reversal is expected once it appears on the chart.
A falling wedge pattern must meet certain conditions for it to be validated; have two trend lines linking the rising peaks and troughs. The pattern must also slop upward to the right of the chart.
As the pattern begins, the asset experiences a spike in trading volume that contracts as the lines converge. A breakout is expected before the trend lines meet and marks the start of a downtrend.
The downswing target can be estimated by taking the distance between the falling wedge’s widest points and applied to the breakout point. For instance, as the volume rises, Ethereum price will likely plunge 13% to trade near $1,800.
ETH/USD four-hour chart
The impending downswing is supported by a bearish impulse from the Moving Average Convergence Divergence (MACD). A bearish appeared after the 12-day EMA crossed beneath the 26-day EMA.
Similarly, the downtrend will continue to be validated as the MACD closed the gap to the mean line (0.00). A sharp dive by the Relative Strength Index (RSI) adds credence to the bearish narrative.
Ethereum price intraday levels
Spot rate: $2,060
Resistance: $2,100 and $2,300
Support: $2,000 and $1,800Source