Ethereum is the second-largest cryptocurrency in the world and the king of altcoins. However, the recent bitcoin sell-off couldn’t save it from a 55% slide down the rabbit hole. At the time of writing, ETH is being traded at $117 with a market cap of $12.6 billion.
The 24-hour trading volume for ETH was at $11.2 billion, the third-largest in terms of trading volume after Tether and bitcoin. With the formation of a pennant, the breakout is anticipated more than usual as this decides if the crash is complete or if more is yet to come.
- The pennant formation puts Ethereum in a pickle, not knowing which way it will breakout. Regardless of the breakout direction, it will decide the trend.
- The upside includes a 27% surge while the downside includes a 16% drop push price of Ethereum to $100.
60 Minute Ethereum Chart
The 60-minute chart shows the formation of pennant for Ethereum that extends back to 5 days ago. As seen above, the price has managed to stay above the $119 support level for most of its time in this pennant and has recently come below it.
At the time of writing, the price is testing this resistance at $119 and was also near the apex of the pennant. Breach from this triangle could either lead to profits or loss, based on the direction.
The wave trend indicator which determines the trend of an asset, be it short term or long term, is indicating exhaustion of buyers. The indicator has almost reached an overbought zone indicating a drop in this trend and a slide towards the oversold zone, which would indicate a downward breakout.
The minimum drop that can be expected if the price breaches to the sound are 6.5%, however, it could stretch up to 16% depending on the bearish momentum. Similarly, the upward breakout could be more profitable since the maximum breakout percentage is 23. However, the minimum surge could be 7%.
The upper limit would put ETH at $145 and the lower limit at $100, or possibly below it. It would be safer to wait for a confirmed breakout of the triangle before setting up positions in either direction.
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