Ethereum chart gives bearish signals: what to expect from the ETH price this week
Date: 2023-08-08 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of Ethereum (ETH) started to decline after a false break of the $1950 horizontal resistance area in April. This is considered a decidedly bearish sign.
However, while the ETH/USDT chart is bearish, a bullish pattern has formed on the ETH/BTC chart.
Ethereum Price Falls After Rejection
Technical analysis of the weekly timeframe gives a predominantly bearish forecast. The main reason for this is a rejection (marked with a red circle on the chart) above the $1950 resistance area, followed by a decline. Such moves mean that the breakout was false and often results in a significant drop in price.
In early July, ETH confirmed the $1950 area as resistance.
If the decline continues, the long-term rising support line will be at $1450. A fall towards it would mean a 20% decline from the current price.
The weekly relative strength index (RSI), meanwhile, gives a neutral forecast: it is slightly above the 50 mark, but does not make decisive movements in either direction.
ETH Price Prediction: Asset Could Outperform Bitcoin
While the ETH/USDT chart is leaning bearish, the ETH/BTC chart is predominantly bullish. There are three main reasons for this:
Since September 2022, ETH/BTC has been trading inside a falling wedge. This pattern is considered bullish, which means it most often leads to breakouts.
ETH/BTC has returned to the 0.618 Fibonacci support level after falling below it earlier. This happened simultaneously with the rebound from the wedge support line (marked with a green icon on the chart)
The weekly RSI has formed a bullish divergence (marked with a green line on the chart). Its appearance on the chart often leads to the beginning of an upward movement.
Thus, the ETH/USD price prediction is bearish and ETH/BTC is bullish. In the first case, the recovery of the $1950 resistance area signals a change in trend and may lead to an increase towards $2300.
A close below the wedge support line will negate the positive scenario for ETH/BTC, triggering a drop to ₿0.050.
