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Ethereum course prepares for 5 percent correction

  • The Ethereum price is in a consolidation phase around $ 3,267.
  • First of all, a breakout to the bottom is to be expected.
  • Ethereum finds support at around $ 3,018.

Ethereum (ETH) is in a consolidation phase. A symmetrical triangle has formed since September 7th. The price movement is narrowed on both sides with lower highs and higher lows. With two tests on the top of the symmetrical triangle, this acts as an element slightly more accommodating to sellers and providing a breakdown to the bottom. These two additional entries have given sellers further opportunities to sell Ethereum while buyers only had one chance to take a long entry. That was with just one test of the green ascending trendline.

The Ethereum price threatens a 5% correction. The breakout to the bottom is initially faced with the monthly pivot at $ 3,122, but as it looks on the chart, it is no problem for the sellers to break this level. However, as soon as the monthly pivot is undercut, further headwinds could arise.

EtheruemETH / USD Daily chart

$ 3,018 is a critical level that started on May 20th. It is true that this brand was tested a little more frequently at the beginning of August. But even so, this level is still of great importance as it could control the candle body every time it is above this level. For Ethereum sellers, this mark is a sign of profit-taking. Buyers will take action at this point and ensure that Ethereum does not lose too much of its value – a perfect “buy-the-dip”. Add to this the 55-day Simple Moving Average (SMA) at $ 3,020. This is a very attractive level.

If sellers are strong enough to deter buyers from trying to buy, expect another 10% downward revision from $ 3,018. That would bring Ethereum to $ 2,695. This level (purple line) is just below the monthly S1 support, making it a double bottom to be reckoned with. If buyers don’t buy the drop at $ 3,018, they will surely buy it at $ 2,695

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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