Ethereum ETHUSD
Ethereum price prediction turns bullish on the back of a falling wedge pattern. Equally important is the fact that the market has found support at the $2,000 level, a round number that attracts the price action.
The $2,000 level acted for Ethereum in the same way as the $30,000 level acted for Bitcoin. Bitcoin moved below the $30,000 level last week but it found only buyers down there. The same with Ethereum and the $2,000 level, as the market bounced despite forming three lower lows.
Moving forward, the focus now shifts to the $2,400 level. A daily close above that level has many implications, one being that the upper edge of the falling wedge pattern is broken. Another is that it puts pressure to break the series of lower highs, something that bulls would want to see in order for the bearish sentiment to dissipate.
Selling Ethereum here makes no sense from a technical point of view. But it does make sense for bulls to wait for the price action to break above the upper edge of the reversal pattern before going long. The invalidation level should be set a the lowest point in the wedge formation, and the take profit using a risk-reward ratio of 1:3.
Follow Mircea on Twitter.
