Ethereum price analysis: ETH/USD forms a bull flag set up, another breakout pending, before bears potentially regain control
- Bull flag pattern seen on the 1-hour time frame, pending breakout, bears may be waiting for re-entry after this possible move.
- Daily chart, still has some bearish indicators, eyes on $390, consolidation region, before the big bull run at the end of 2017.
The Ethereum price is nursing losses of over 3% in the second half of Monday’s session, as it treads sideways post the large pullback seen. Ethereum bounced off from lows at around $450 printed on Sunday, before quickly moving to $563.
ETH/USD is some 63% down from January’s highs above $1400 and 45% away from making a 100% retracement of the bull run from the back end of 2017. Ethereum has been trading within a firm downward trend, as the price has closed with heavy losses in two consecutive weeks.
The price has respected strong touted resistance within recent trading, at $565. On the 1-hour time frame, a bull flag can be seen to have formed, the price is currently moving within this pattern. There could be another breakout to the upside, which may see the above-mentioned resistance cleared. Over the longer time frame, daily chart, the trend is still bearish, with a target on $390, where the price consolidated in November 2017, before Ethereum continued its big bull run.
ETH/USD 1-hour chart
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ETH/USD daily chart
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Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
