What does this pattern mean for Ethereum in the coming weeks, pulling back into the cards?

Ethereum 1

Ethereum had seen an uptrend that caused the price to soar at the start of the week, eventually breaking above $3,000 again. However, the digital asset has struggled to maintain this position in what it is proving to be a “takeaway.” Raoul Pal, CEO and co-founder of Real Vision, recently presented his analysis of the digital asset, explaining when and how an outbreak could occur.

Where is Ethereum going?

Looking at the inverted head-and-shoulders pattern that started forming Tuesday, Pal points to this pattern that was still affirmative, but still showed some indicators for the digital asset. He pointed out that the Daily DeMark had shown a 13 and a 9 on Wednesday. And what this meant was that the early week break would likely fail on the first try, which it did when Ethereum had fallen below $3K.

Pal went on to explain what this could mean for digital assets. The head and shoulders reverse was validated by the Weekly DeMark 9 currently in place, evidenced by the pattern accurately nailing the low of the cryptocurrency’s price.

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However, ETH/BTC continues to consolidate, the CEO noted. Adding that this should keep moving towards the top of the flag. After this, the digital asset price is expected to break out in due course.

ETH Breaks Above $3,000 | Source: ETHUSD on TradingView.com

This analysis of Pal is expected to take place in the coming week. As with any analysis, time will tell if the prediction is correct or if Ethereum will eventually move in a completely different direction.

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As for the digital asset, it continues to move around $3,000. This resistance point that was broken yesterday proved hard to beat for the cryptocurrency. However, if momentum picks up, it could very well break above it again and find support. But it still remains a strong seller’s market, meaning the likelihood of a downtrend is more likely.

The price of Ethereum is trading at $3,004 at the time of writing. Bears are still building significant resistance at this point, as evidenced by the slight dip that followed this breach above USD 3,000.

Featured image from CNBC, chart from TradingView.com

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