- Ethereum fights to regain the position above $1,800 but is still vulnerable to declines.
A rising wedge pattern on the 4-hour chart hints at the impending breakdown.
Support above $1,800 will keep bulls focused on highs beyond $2,000.
Ethereum had closed in on $2,000 from the beginning of the week. However, the momentum lost steam slightly above $1,800, leaving $1,900 untested. A minor correction followed, but support at $1,755 remained intact. At the time of writing, Ether is trading at $1,794 amid the push to regain the ground above $1,800 and secure the remaining journey to $2,000.
However, a rising wedge pattern signals that a massive correction is around the corner. In other words, the expected liftoff may fail to occur in favor of a decline below the pattern.
A rising wedge pattern occurs amid an uptrend. It signifies that the uptrend is nearing the end as bulls get exhausted. On the other hand, bears begin to get excited about taking over the control. A breakdown happens when the price finally slices through the lower trendline. Note that the move tends to be rapid, and therefore to take maximum advantage of it, traders have to time it accurately.
An increasing trading volume helps to validate the expected downswing. Similarly, the Moving Average Convergence Divergence (MACD) shows that the trend is flipping bearish. This is reflected by the MACD line (blue) crossing under the signal line. Besides, the MACD is dropping toward the mean line, confirming the incoming bearish outlook.
On the upside, holding above $1,800 could ensure stability in the market. Buyers will have the chance to speculate on trading above $2,000. Moreover, a move beyond $2,000 is likely to trigger massive buy orders as Ether grinds to new record highs.
Ethereum intraday levels
Spot rate: $1,800
Relative change: 4%
Percentage change: 0.24%
Trend: Bearish
Volatility: High
