Ethereum Price Faces Resistance After Ascending Wedge Breakout
CryptoNewsTerminal Staff14 Aug, 2024
Ethereum Price Faces Resistance After Ascending Wedge Breakout
Ethereum (ETH) has been on a rollercoaster ride over the past few weeks. After breaking out of a descending wedge pattern during last week's Black Monday, ETH rallied back above the $2,100 support level. However, this area is also the lower part of the previously broken descending wedge pattern, which could halt the upside momentum and lead to a short-term correction in the coming days if sellers step in. ETH is currently facing resistance in the $2,600-$2,800 range, which has led to the formation of a Descending Broadening Triangle pattern. A breakdown from this pattern could lead to a bearish continuation toward $2,100. However, a significant decrease in open interest (OI) in the perpetual futures market since the price drop also raises the possibility of a bullish continuation, depending on the demand. Overall, the technical outlook for ETH is mixed. The breakout from the descending wedge pattern is a positive sign, but the resistance at $2,600-$2,800 and the formation of the Descending Broadening Triangle pattern are bearish factors. Traders should watch the price action closely in the coming days to see if ETH can break above the resistance or if it falls back toward $2,100.
