The possibilities of Ether (ETH) going below $4,000 have increased following a selloff on Nov. 16
ETH Fell 10%
On Tuesday, ETH fell 10% to about $4,100, owing to a market correction driven by Bitcoin (BTC). Ether fell below its fourth-quarter upward trendline support as a result.
Before rising higher, ETH/USD challenged its 50-day exponential moving average (50-day EMA; the velvet wave in the chart above) as a fresh price bottom. If the 50-day EMA is broken, the next support line to watch is probably around $3,700.
Are there going to be more drops?
The presented situation The Ascending Trendline is part of a Rising Wedge, which many analysts regard as a bearish reversal indicator. When the price moves within a range established by two converging, rising trendlines, it appears.
Analysts validate a Wedge breakthrough when the price breaks below the lower trendline and is accompanied by an increase in trading volume. They usually look for a run-down to the level at a length equal to the width of the Wedge’s trendlines.
As a result of the Rising Wedge pattern, Ether has the potential to plummet below $3,000 in price. There is, however, a snag.
Ascending Triangle formation
The Ascending Triangle formation counteracts the bearish reversal situation created by the Rising Wedge structure, putting Ether at roughly $6,500 by the end of 2021.
Days after breaking over the Triangle’s resistance level, the ETH price retests it as support, forming a bullish setup.
This type of action often eliminates weak hands from the market, allowing traders/investors with a long-term upward outlook to profit from the asset’s solid fundamentals.
As a result, Ether’s recent decline may be exhausting, as the ETH price has met the Triangle barrier below $4,000, which is also the lower trendline of the Rising Wedge. If the market continues to rise, the price might reach $6,500.
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