Ethereum Price Analysis: Falling Wedge Pattern Extends The Correction For ETH Coin

The Ethereum coin is still trapped in a correction phase, led by a falling wedge pattern. The price action confirmed the $3600 mark as a valid support level, from where the price starts a new recovery. However, escaping this falling channel, the price will provide a better confirmation for carrying an upward rally. 

Key technical Factors: 

• The ETH coin price action forms a descending wedge pattern in the daily chart
• The intraday trading volume in the Ethereum coin is $9.75 Billion, indicating a 10% fall.

Source- Tradingview

The last time when we covered an article on Ethereum, the coin price showed an ascending triangle pattern with hopes of a bullish breakout. However, the price failed to rise above the resistance line of the triangle pattern and breached the support trendline. The downfall following the fallout reached $3650, which was predicted in the last article. 

Presently, the coin price action shows a descending narrowing wedge pattern in the daily chart. The price shows a bullish reversal from the confluence of the support trendline and the $3650 support level.

The coin price breaks below the 50 days EMA, but the 200 days EMA stands strong as the last line of defense against the ongoing bearish attack. 

The daily Relative Strength Index (44) approaching the neutral line(50) has started showing recovery signs in its chart. Moreover, the RSI line gives a bullish crossover with the 14 day SMA.

ETH Coin 4-hour Time Frame Chart

Source-Tradingview

The Ethereum coin price has moved above the $3650 support level for the past two days. Moreover, the price action forms a double bottom pattern in the 4-hour chart. The breakout of this pattern can induce a high trend bullish momentum if it breaks and sustain above the $3900 mark.

On the opposite end, if the price fails to continue the uprise and breaks the $3650 mark, a downfall to $3500 is possible.

The price action of the ETH coin suggests the nearest resistance level is at $3900 and $4250 that can influence the upcoming trend. Furthermore, the support levels are around the $3650 mark and $3500 level.