The crypto market has been in the process of monthly consolidation for nearly a quarter, with many investors beginning to wonder if their portfolio values will return to March levels by the end of the year.
We’ve seen some increased volatility over the past month, which to me is signaling accumulation. While we wait for the long term investment moves to playout, there are still good trading opportunities on the lower time frame charts.
Ethereum holders may be pleased to know that some relief may be on the way. For the first time in 20 days, the price of ETH has risen above the 144 EMA on the hourly chart.
The last time this move occurred, Ethereum was able to rally 25% before meeting strong selling pressure as the weak hands look for any opportunity they can to exit.
There is little doubt in my mind that this pressure still exists, there is a longer term falling wedge occurring on the daily chart, which is denoted by the blue lines in the chart. Green line at the bottom is the weekly Golden Pocket.
Should Ethereum be able to rally from its current position around $1965, selling pressure could step in around the $2200 range. This move could result in a 13% gain with potential to break the long term wedge, confirmed on high volume.
Unfortunately for Ethereum bulls, they will be meeting heavy resistance around $2250. The daily chart shows the weekly 0.5 Fib level, 144 EMA, 55 EMA and diagonal wedge resistance all confluent within the same area.