Ethereum Forms Classic Bullish Pattern as It Rebounds 16%

Divya  |  Jul 23, 2021

Ethereum (ETH) showed a strong recovery on Thursday after Tesla CEO Elon Musk revealed that he personally held the currency, along with Bitcoin and Dogecoin. The second-largest cryptocurrency posted 16% in gains and reclaimed the $2,000 mark, as it formed a classic bullish pattern that could take the price to $2,500.

Ethereum Follows Bitcoin in Sharp Recovery, Forms Bullish Pattern

Musk's address at a recent crypto event boosted investor sentiment in Bitcoin, which had lately dropped below its $30,000 support level. As of yesterday, the pioneer cryptocurrency rebounded by nearly 5% and touched an intraday high of $32, 895. Soon enough, altcoins followed suit, and ETH rose as much as 18.20%, a surge that took the price from $1,720 to around $2,000. At the time of writing, Ethereum was changing hands at $2,066.08.

Meanwhile, pseudonymous crypto trader and analyst Rekt Capital pointed at an “orange area” on the weekly ETH/USD price chart, while drawing attention to three bearish wicks. The trader asserted that the structure could prevent Ethereum from declining further and possibly lead to an incoming rally.

According to Rekt Capital, ETH surged 16% after recovering from the orange area and has since formed a Falling Wedge pattern, a bullish indicator that starts wide at the top but begins to contract as prices move lower, thus creating a sequence of lower highs and lower lows. It usually gives a bullish confirmation when an asset’s price surges past the Wedge’s upper limit with an upward swing in volumes.

Presently, Ether’s price activity reflects all the signs of a classic Falling Wedge pattern and it can maintain its gains if it holds the bottom of the structure.

The Wedge’s upper and lower trendlines are currently separated by a maximum distance of $850. This means that a breach of the upper trendline can push Ethereum’s price to $2.5 K.

Although, Rekt Capital notes that as per daily ETH activity the price could trend in the $1,850-$2,080 range before the anticipated rally.

Monarch Blockchain Will Support ETH Hard-Fork Pulsechain

Monarch Blockchain, the company behind Monarch Wallet and payments platform MonarchPay has announced  support for Richard heart’s ETH hard-fork called “Pulsechain." The project was launched a few days ago and raised more than $26 million for a medical charity within the first six days of the sacrifice period.

Pulsechain seeks to enhance the Ethereum network by taking away some of its load and addressing its existing inefficiencies. It boasts improved energy consumption for ETH with a move to a proof-of-stake consensus and also brings down the transaction time to 3 seconds from the previous 13 seconds. This will enable, Ethereum to serve more users with better transaction speeds and reduced fees across the network.

The project reportedly intends to organize one of the largest airdrop events in the upcoming days, where tens of thousands of tokens will be given away for free.

 

Related News