Ethereum (ETH) Could Turn Bullish Due to Descending Wedge Pattern

October 20, 2019 5:54 PM UTC

Ethereum lost the daily uptrend a few days ago and has been unable to recover, however, the bulls are seeing some upside today.

A descending wedge formed in the 4-hour chart for ETH. The bulls are actually trying to break out of this pattern right now as they have just been rejected from it. ETH is currently trading at $175 and above both EMAs on the 4-hour chart.

If the bulls are able to break out of this pattern, the daily chart could easily shift back to an uptrend as the bulls would face no real resistance until $188.58.

The bulls are currently trying to break both EMAs on the daily chart, however, they need the momentum of the 4-hour chart pattern in order to do it.

The hourly chart is clearly in favor of the bulls which have broken above the EMAs. The RSI is almost overextended, so the bulls are facing two resistances at once, the RSI and the top of the descending wedge. The RSI isn’t necessarily a tough resistance as we have seen cryptocurrencies trade within the overextended areas of RSIs for long periods of time.

The weekly chart for Ethereum has almost nullified the bear flag and the bulls could be trying to set a higher low compared to $152. This would be confirmed if the daily chart shifts to an uptrend again.

 

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