Over the past day, the cost of Bitcoin has not changed again and has remained near the level of $20,500. The trading volume also remained at the same level. All this suggests that at the moment neither bulls or bears are ready to work with the market. Their attention has shifted to the altcoin market, which continues to show an upward trend.
Many of the cryptocurrencies have risen by 20% – 30% in the last 2 days. Even the biggest altcoin Ethereum is up 25% from its last low. Let’s take a look at its chart and try to figure out which direction the chart might go in the coming days:
Yesterday, the price of ETH set a local high $1,194 and immediately after that, the sellers put a lot of pressure. As a result, the price fell by 7% and is still in a local downward movement. It is obvious that buyers do not have enough strength to support the upward movement. This can be seen from the trading volumes, which have been systematically decreasing since the beginning of the week.
As a result, a local rising wedge was formed on the chart, which is clearly visible on the hourly timeframe. Moreover, this formation has already started working out after dropping below the lower boundary. According to this pattern, the price of ETH has every chance to drop another 6% to the level of $1,040. This can happen within two days.
The main support level for Ethereum is in the $1,000 region. It is here where the further direction of price movement will be determined. Depending on the outcome of the struggle, it will become more clear whether Ethereum will go up or down.
At the same time, a slight decrease to the $1,000 area is also needed on the 4-hour timeframe. This will unload the indicators and will finally form the first wave of growth. That is why we believe that the probability of the Ethereum growth continuing during the week is slightly higher.
The main resistance on the chart is the $1,250 – $1,280 range. It was at this level that a large seller used to be. We will most likely see Ethereum reach this range within a week and stop briefly. Thus, the local picture of the next two days is downward, but within 7 – 10 days the chart has every chance to be near $1,250.