Ethereum Price Risks Fakeout After Recent 40% Price Rally

The Ethereum price risks fakeout after the recent 40% price rally and it could drop by another 45% because of the ascending triangle breakout which looks unconvincing so let’s read more today in our Ethereum latest news.

Ethereum’s native token ETH saw a modest pullback after ramming in a critical technical resistance confluence. The price dropped by 1.8% after struggling to move above two major resistance levels which are the 50-day exponential moving average and the descending trendline that serves as a price ceiling. The Ethereum price risks another drop as it dropped by 1.8% while previously it rallied by over 40% from $1000 to $1400. the jump seemed partly due to the euphoria around the Merge event scheduled for September.

#ETH/USD

We got a bullish cross between 200 & 50 moving averages on 4h👀

Looking for more upside locally📈 pic.twitter.com/WnGY19khnK

— Albert III (@AlbertcryptoN) July 15, 2022

In the meantime, the golden cross appearance of the ETH four-hour chart boosted the ETH upside sentiment among other technical analysts. The ETH 40% plus price rally also had the price break above the critical horizontal resistance which constitues an ascending triangle pattern. This triangle are often continuation patterns but in some cases, it can appear at the end of the downtrend which can lead to a bullish reversal.

The market analyst Scott Melker considered the ETH bullish exit out of the prevailing ascending triangle as a sign that ETH can rally further:

“A break above $1,284 should send prices flying, as there’s almost no resistance until the $1,700s.”

Ether broke above $1284 and the breakout zone but it is close above the ascending upper trendline which was not accompanied by a rise in trading volume. This suggests a weakening upside momentum dubbed a fakeout. The Etheruem price risks fakeout and it risks a reversal trend near the $1284 support. The ETH/USD pair can retain the bullish bias as it rebounds from $1284. break below this level could restart the ascending triangle setup with the bias looking towards bears. ETH could also risk crashing to $750 as per the rule of technical analysis.

As earlier reported, BitMEX research shows that Ethereum dwarfed BTC As the center of dapp activity in crypto and while there are technical reasons for the discrepancy, the team claimed that the BTC developer culture before Ethereum’s launch drove other use cases away from the ecosystem. The report explored online discussions from 2014 among the Bitcoin Core developers that pertain to the application layer. They started with the launch of the Counterparty protocol earlier this year with a layer 2 solution for working on new tokens and trading them on a distributed exchange.