Ethereum Price Prediction: The ongoing correction phase is Ethereum price is led by a falling channel pattern. In the four-hour time chart, the series of new lower lows indicates the coin price is experiencing a steady downfall. Though the pattern seems to be carrying a downtrend, its technical setup is meant to offer a strong long opportunity upon the breakout of its resistance trendline.

Key Points: 

The Ethereum price may continue its ongoing correction until the channel pattern is intact
A bullish breakout from the channel patterns resistance trendline may recuperate bullish momentum to resume the prior uptrend
The intraday trading volume in Ether is $10.8 billion, indicating an 18% gain.

Source- Tradingview

In our previous articles, we mentioned the formation of a megaphone pattern, in Ethereum’s daily time frame chart. Under the influence of this pattern, the coin is forming higher price swings indicating increasing volatility in the market.

Anyhow, the ETH price recently reverted from this pattern resistance trendline and initiated a new bear cycle. Thus, the ongoing correction wobbling between the two trendlines revealed a falling channel pattern.

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Ethereum Price Prediction: Channel Pattern Breakdown May Resume ETH’s Prior Recovery Rally.

Source- Tradingview

Today, the Ethereum price is down 0.88% and shows rejection candles and decreasing volume at the overhead trendline, indicating a higher chance of bearish reversal. With sustained selling, the altcoin may drop 6.5% down to meet the lower support trendline.

However, the most common outcome of this pattern is a strong directional rally upon the breakout from its resistance trendline. Thus, a potential breakout from the overhead trendline will accelerate the buying pressure and drive the prices back to the last swing high resistance of $1720.

Moreover, the buying pressure intensified from channel breakout could also assist buyers to complete the aforementioned megaphone pattern on a bullish note.

Technical Indicator

RSI:  The daily RSI slope moving around the midline indicates the market sentiment neutral. 

EMAs:  the 50-day EMA slope acts as a dynamic support to the Ethereum coin price

Ethereum Coin Price Intraday Levels-

Spot rate: $1559
Trend: Bullish
Volatility: Medium
Resistance level- $1680 and $1780
Support level- $1560 and $1510

The post Ethereum Price Prediction: Here’s How You Can Trade Ongoing Correction In ETH appeared first on CoinGape.

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Filed under: News - @ March 2, 2023 3:20 am