Ethereum price at risk of falsification after the recent 40% price surge and it could fall another 45% due to the breakout of the ascending triangle which does not look convincing, so let’s read more today in our Latest Ethereum news.
Ethereum’s native token, ETH, saw a modest pullback after hitting a confluence of critical technical resistance. The price fell 1.8% after struggling to overcome two major resistance levels which are the 50-day exponential moving average and the descending trendline which serves as the price cap. Ethereum price is at risk of further decline as it fell 1.8% while previously rising over 40% from $1,000 to $1,400. the jump seemed partly due to the euphoria surrounding the Merge event scheduled for September.
We got a bullish cross between 200 and 50 4h moving average👀
Looking for more benefits locally📈 pic.twitter.com/WnGY19khnK
— Albert III (@AlbertcryptoN) July 15, 2022
In the meantime, the appearance of a golden cross on ETH’s four-hour chart has bolstered bullish sentiment for ETH among other technical analysts. The 40% higher ETH price rally also had the price break above critical horizontal resistance which forms an ascending triangle pattern. This triangle is often a continuation pattern but in some cases it can appear at the end of the downtrend, which can lead to a bullish reversal.
Market analyst Scott Melker viewed ETH’s bullish exit out of the dominant ascending triangle as a sign that ETH may rally further:
“A break above $1,284 should send prices flying, as there is almost no resistance up to $1,700.”
Ether moved above $1284 and the breakout zone, but it sits just above the rising upper trendline which was not accompanied by an increase in trading volume. This suggests weakening bullish momentum dubbed a fakeout. Etheruem price is at risk of being faked and it risks a trend reversal near the $1284 support. ETH/USD may hold the bullish bias as it rebounds from $1284. a break below this level could revive the ascending triangle pattern with the bias turned towards the bears. ETH could also risk falling to $750 according to the rule of technical analysis.
As stated earlier, BitMEX research shows that Ethereum has eclipsed BTC as the center of dapp activity in crypto and while there are technical reasons behind it, the team asserted that BTC developer culture before launch of Ethereum was driving other use cases away from the ecosystem. The report explored online discussions from 2014 between Bitcoin Core developers regarding the application layer. They started with the launch of the Counterparty protocol earlier this year with a layer 2 solution to work on new tokens and trade them on a distributed exchange.
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