fxstreet.com 22 Feb, 2021 14:00 am

ETH eyes a 40% drop as it nears the end of a rising wedge

ETH eyes a 40% drop as it nears the end of a rising wedge
Ethereum price has dropped approximately 10% since it hit a new all-time high at $2,034 on February 20. At the time of writing, ETH price is trading j

Ethereum price gets squeezed as it approaches the end of a rising wedge pattern.At the time of writing, ETH price is trading just above the lower trendline of the rising wedge, waiting to establish a direction.Connecting the swing highs and swing lows show converging prices which results in a rising wedge pattern.Therefore, a decisive 6-hour candlestick close below $1,840 would confirm the end of a rising wedge pattern and signal the start of a downtrend.

Ethereum GIOM chart However, a bounce from the rising wedge’s lower trendline or even from the $1,690 support level could prevent this drop.A breakout from the wedge’s lower trendline signals a 40% drop on the horizon.

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