You are currently viewing Ethereum risks 'bull trap' after 25% ETH price rebound

Ethereum risks 'bull trap' after 25% ETH price rebound

Ethereum’s token Ether (ETH) could be entering a “bull trap” zone after rebounding back above the $1,000 mark from 18-month lows of $885. 

Ether price paints a “rising wedge”

The first among these indicators is a “rising wedge,” a classic bearish reversal setup that forms after the price trends upward inside a range defined by two ascending but converging trendlines. The wedge setup gains further confirmation if the trading volume drops alongside the rising prices.

Theoretically, a rising wedge resolves after the price breaks below its lower trendline and eyes a run-down toward the level at length equal to the maximum height between the wedge’s upper and lower trendline

Ether has been forming a rising wedge since mid-June, as shown in the chart below.

ETH/USD four-hour price chart featuring ‘rising wedge’ setup. Source: TradingView

Hence, its interim bias appears to the downside, with a decisive breakdown below the lower trendline risking a decline toward the

Keep reading this article on Cointelegraph.com.

Leave a Reply