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For days now, we have been tracking the ETH Converging Triangle Pattern playing out in the 4-hour timeframe. And right now, the target for that bullish pattern has been smashed!
The question now is what can we expect to see play out in the coming days. Should we expect to see the Altcoin continue to push higher to the upside or will Ethereum begin to sell off again?
In this ETH analysis, we will be breaking down the weakness we are seeing creep into the ETH rally and what this might mean for the Ethereum bulls in the coming days.
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What Now For Ethereum?
The Ethereum price is right now in a free state! And in this state, there is a very high possibility for us to see the Altcoin move in any direction in the coming days.
It is also important to note that bulls are right now losing bullish momentum and we see bearish divergence developing in the 4-hour timeframe. This bearish divergence is between the ETH price and the MACD indicator.
What Does This Bearish Divergence Mean?
The image above is what a completed bearish divergence should look like!
Bearish Divergence shows weakness in price. The bearish divergence is caused when the price is moving higher while the MACD indicator keeps on moving lower. Once this happens, it signifies that the asset might be weak and ready to sell off.
Right now, the Ethereum price is rallying higher, but the MACD indicator is showing a clear sign of a downtrend.
This tells us that “while the price might be moving up, bullish volume is dying down” and if this continues, sooner or later the ETH price will reverse.
Final Verdict!
The Ethereum price is right now still pushing up higher. However, this bullish push is gradually losing steam. And as it gets weaker, we expect to see the bearish divergence between the ETH price and the MACD indicator grow!
If bullish momentum does not begin to pour into the market soon, there is a very high probability that we might see more sellers step in and push the Altcoin lower in the coming days.
For now, we are still bullish on Ethereum until the trend says otherwise. However, we are very cautious and will remain cautious for now.
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