If you've heard of Ethereum but think that "support and resistance" are for the gym, don't worry, I'll explain. Currently, Ethereum $ETH , this superstar of the cryptocurrency world, is trading at $3,433. Yes, it has dropped 2% in the last 24 hours and 7% in the last week. Sounds bad, right? But don't worry, there are good things coming.
What is this "bullish reversal pattern"?
On the Ethereum chart, experts have noticed something called a Wide Descending Angle (no, it’s not a balletic movement). This is as if the price is drawing an inverted triangle, and when it breaks out of this shape, it usually bounces upwards. Translation? Good chance for the price to go up!
The important points to follow are:
Resistances: $3,713 and $4,159 (these are like barriers that the price needs to overcome).
Supports: $3,136 and $2,953 (the “floor” that holds the price from falling further).
Why might this be a good sign?
Data shows that people are taking Ethereum off exchanges, meaning there are fewer coins available for sale. Last week, $1.2 billion was withdrawn (the largest withdrawal in history!). This could create supply pressure – with less Ethereum available and more people wanting to buy it, guess what happens? Yes, the price could go up.
And the numbers confirm this
The Relative Strength Index (RSI) is at 44, which means that Ethereum is almost in a “sell-off” (or, in technical terms, oversold). Experts say that this could attract more buyers and give the price a boost. Additionally, Ethereum’s funding rate is positive, which suggests that investors are more optimistic.
But of course, not everything is perfect. If the bearish market takes control again, the price could fall below $3,000.
So, will it reach $4,000?
No one can guarantee it (if anyone tells you otherwise, run away!), but the signs are positive. There is less Ethereum available on the market, bullish investors, and a chart pattern that historically indicates bullishness.
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