FX.co ★ Bearish wedge pattern in Ethereum.

Ethereum price action has recently formed an upward sloping wedge pattern. Such patterns usually break to the downside and that is why it is considered a bearish wedge pattern. There is another warning signal supporting the scenario that the break out of this pattern will most probably be to the downside.

Blue line - bearish RSI divergence

The RSI is providing us with the other warning signal to bulls. Price is making new higher highs but the RSI does not follow. This increases the chances of a reversal to the downside. Support by the wedge pattern is found at $2,280. Breaking below it will open the way for a pull back at least towards $2,000. Resistance is found at $2,450-$2,500. The most probable scenario is for price to make a short-term top soon and reverse lower towards $2,000.