Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Trading Recap
On July 22nd, Ethereum (ETH) reached a high of $3,564, marking the highest level for the month. I observed this peak and noticed Ethereum forming a lower high at $3,500. This suggested that the cryptocurrency was respecting its previous resistance levels. Recognizing this pattern, I anticipated a potential downturn and identified an opportunity to adopt a short bias.
I placed my exit around $3,450 to capitalize on this prediction, aligning with previous resistance levels. This strategic move was based on the expectation that Ethereum would soon decline and seek new support levels. That’s around a 1.70% gain.
Price Prediction
When examining Ethereum on a daily timeframe, it becomes evident that the cryptocurrency is forming a rising wedge pattern. This pattern is typically a bearish indicator, suggesting a potential price correction. As Ethereum continues to develop within this pattern, we can expect a healthy consolidation period before any significant upward movement resumes.
Regarding specific price levels, Ethereum could correct to $3,346 to $3,200. This range represents key support levels that may come into play during the anticipated consolidation phase.
Final Thoughts
In summary, while Ethereum’s recent high of $3,500 was notable, the formation of a lower high and a rising wedge pattern indicates a likely price correction shortly. Traders should be prepared for a possible decline to support levels between $3346 and $3200, followed by consolidation before further upward movement.
For more in-depth technical analysis like this one, make sure to subscribe and hit the notification bell on UseTheBitcoin’s YouTube channel. We post daily videos covering the crypto markets, so don’t miss out!
