The ETH/USD outlook: another downfall is expected
|Over the weekend the price of Ethereum has increased by 15.13% at first coming up from $146 at its lowest point on Friday to $168.58 at its highest point on Sunday and showing a strong bullish momentum.
From there the price of Ethereum started falling down fast as it decreased by 20.22% coming to $138.44 on FXOpen UK at its lowest point yesterday.
Looking at the hourly chart, you can see that the price found support around 0.618 Fibonacci level on yesterday’s downfall and the price action started forming a symmetrical triangle around those levels.
Considering the context, this triangle could be interpreted as a bearish pennant which is known to be a trend continuation pattern so another downfall from here could be expected.
As the Intermediate Y wave out of the WXY correction ended as I have counted 5 waves, we are most likely seeing the start of a trend continuation to the downside.
If this is true, then we could see the price increase from here to the vicinity of the previous 5th wave’s ending point, which would be the second wave out of the presumed impulsive decrease that started yesterday, similarly to what can be currently seen on the chart of Ripple.
More consolidation and sideways movement would now be expected before another downfall as the market participants are getting confused by these current market conditions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.