Technical analysis ETH/USD, September 14

14.09.2020 15:32:33

As the hype around DeFi wears off, the price of Ethereum also cools. After falling from the high of $480, the price of Ethereum entered the range of $325- $380 and has been moving in it for 10 days. As the price of Ethereum fell by almost 7% yesterday, it has evened out all the gains seen in the previous week.

On the hourly chart, the ETH/USD pair was able to form two upward pennants. Price broke down from the first large upward pennant and entered a new upward pennant. At the time of publication, the price is moving near the upper border of the pennant. The bulls are trying to revive the price of the cryptocurrency.

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If we compare the new ascending pennant with the previous one, it is a continuation pattern. In this case, the ETH/USD pair will continue to move towards the previously defined targets at $356. In this case, sellers should set their stop loss at $375. The take profit level can be at two points, the first at $356. The second take profit is in the area of ​​the strong support level of $336.

It should also be noted that if the price of ETH on a shorter timeframe changes, the rising wedge can also turn into a channel.

Yesterday, the analyst expected that if Ethereum closed the weekly candle below $360, then the ETH/USD pair could fall to $355, but the pair closed around $365. This showed a short-term conflict of market bias. If the pair drops below $360, then it will continue to implement the downward pennant scenario.