Ethereum returns 10%: price now has to make a choice

Exactly a week ago, the Ethereum (ETH) price rose sharply by almost 10 percent. But the price has now almost given up these gains. The price is now approaching an important level again and if the bulls do not wake up soon, things could look bad. Technical analyst Erik Juffermans from Newsbit shows why.

ETH continues to fluctuate

The ETH price failed to break through the purple resistance zone around $3,350 last week. With this week’s decline, the price is now approaching the midpoint of the channel again at $3,050. But an important diagonal trend line also comes close.

The price continues to fluctuate up and down in a clear upward triangle pattern. This is a bullish pattern that breaks out higher more often than not. But it is certainly not a guarantee for an upward rise.

Until the course changes direction, we must therefore remain objective. But it is clear that the space in which ETH moves is becoming increasingly narrow.

For now, the bullish structure is intact. We clearly see higher highs and higher lows. The recent low and midpoint of the channel around $3,050 is the line in the sand here. A drop below this would be a lower low and bring the price target to the bottom of the channel at $2,800.

What will the price do now?

We can speculate for a long time about what the price will do. But we will have to wait and react to the course. The current triangle pattern in which the price has been trading since November is crucial. However, there is a chance that the price will already choose a direction this or next week.

However, volatility is currently a present factor. Economic and political tensions are running high and this is having an effect on the market. So we can see some outliers on lower timeframes. As long as the weekly candle closes within the pattern, there is perspective for the bulls.