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For weeks now, we have been tracking the Triangle Breakout Pattern that was forming in the 4-hour timeframe. This pattern indicated a potential bullish rally for Ethereum to the $2,074 price level in the coming days.
Well, Ethereum has finally smashed through this bullish target and completed the Triangle Pattern. The question traders are asking now is what should we be expecting in the coming days?
In this Ethereum analysis, we will be breaking down the key levels we are currently watching as well as what we believe might happen next for the Altcoin.
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Is The ETH Rally Over Extended?
We believe we are beginning to see some form of bearish divergence play out between the price and the MACD indicator in the 4-hour timeframe.
While the ETH price has continued to push higher, the MACD indicator which tracks volume has remained flat, showing that the ETH bullish volume might already be at its peak.
However, this in no way confirms that we are about to see any change in trend play out for Ethereum, instead, it serves as a warning flag that puts us on alert.
The image below is what a Bearish DIvergence looks like and what we can expect as an aftermath of this divergence forming. This is the main reason we are staying on alert, booking profits, and watching the price closely to see what it does in the coming days.
Final Verdict!
We are for now still bullish on Ethereum. However, we believe this bullish rally is coming to an end soon!
We already see the bearish divergence between the price and MACD forming in the 4-hour timeframe, and sooner or later we might see more sellers begin to step back into the market and attempt to push prices lower.
Nothing is solid yet, so we will be standing aside and waiting to see more confirmation on what Ethereum plans to do in the coming days.
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