Ethereum Negates Bearish Pattern, Eyes Return to $1550
Is Ethereum (ETH) poised for a rebound? After intense market scrutiny and slipping below key support zones, ETH is showing signs of fighting back. The big question: Can Ethereum negate the bearish pattern and reclaim $1550?
Ethereum is struggling to start a recovery wave from $1,550. The price is trading below $1,585 and the 100-hourly Simple Moving Average. There are two bearish trend lines forming with resistance near $1,565 and $1,590 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a recovery wave if the bulls... but the path forward is fraught with challenges.
Technical Analysis: Bearish Signals Persist
ETH’s daily structure remains bearish overall, with prices still trading well below the 200-day moving average, which is located around the $2,800 mark. However, Ethereum showed some signs of recouping losses on Sunday after invalidating a bearish pennant on the hourly chart. This positive sign provides a glimmer of hope amid the prevailing negativity.
With technical indicators flashing red and a bearish market structure in place, previously the chances of ETH falling below $1,550 were high. But has this changed? The short-term invalidation of the pennant suggests a possible shift.
Can Ethereum Overcome the Challenges?
Momentum indicators remain bearish, signaling that ETH may need stronger conviction or a catalyst before any real trend reversal takes shape. The Relative Strength Index (RSI) needs to show significant improvement for a sustained rally.
Veteran trader Peter Brandt is raising concerns about Ethereum (ETH), saying there’s no buy signal right now. He also pointed out a bearish rising wedge pattern. This adds another layer of complexity to the potential for a near-term recovery. There are two bearish trend lines...
The Road to $1550 and Beyond
While the overall outlook remains cautious, the recent invalidation of the bearish pennant offers a potential opportunity for Ethereum. Overcoming the $1565 and $1590 resistance levels will be crucial. Successfully breaking through these barriers could pave the way for a return to $1550 and potentially higher. Keep a close eye on ETH as it navigates this critical juncture.