Ethereum (ETH) News – Ethereum (ETH) might be forming the falling wedge pattern – Ethereum (ETH) technical price analysis August 31, 2018

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Ethereum (ETH) is trading around $ 277. Many traders are trying to figure out where it will go from here. It is trading almost flat when you take into account the last 24 hours. Moreover, even when you look at it on a weekly basis, it is trading entirely flat. That is why traders are trying to figure out whether it can break out on any side. If indeed, it is able to break out on any side, the movement will be pretty fierce. This is because it has been trading in this range for a pretty long period of time.

We look into the Ethereum (ETH) technical price analysis August 31, 2018, to find more.

Ethereum (ETH) technical price analysis of August 31, 2018:

We look into the one-month chart of Ethereum (ETH) in order to conduct our technical analysis. We have attached the image of the chart above. Each candle represents 30 minutes. As both the trend-lines suggest, a pattern of falling wedge might be forming. The falling wedge can only be traded when the breakout happens above topmost trend line. The falling wedge results in a bullish price movement. That is why, once the price breaks out above the topmost trend line, you might think about initiating a long position.

The upper trendline currently ends at $ 294. Thus, if you want to actually initiate a trade, you have to wait out for a breakout about $ 294. When that happens, Ethereum (ETH) might give you an upside of another $ 70. This is because, at the initiation of the falling wedge pattern, the difference between both the trendlines was around $ 75. Thus, the target is the difference on the upper side once the breakout happens.

The lower trendline is at $ 249. This can be kept as the stoploss. Thus, the stoploss is around $ 45 while the target is of around $ 70. Thus, the profit potential might be around $ 70 and the stoploss might be around $ 50. The risk-reward ratio will be in your favor.

You need to, however, keep in mind that rather than taking the cue from the trendlines in the falling wedge pattern, it will be a good idea to use a confirmation signal. The volume-based confirmation signal can also be used. Only when you are able to confirm the breakout, it will be a good idea to trade this pattern.

On the other hand, if the price moves below the lower trendline then the entire pattern might be deformed in which case, there will be no trade.

About Riddhi 224 Articles
I am an electronics engineer and follow the crypto space closely.

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