Published 49 seconds ago
On August 2nd, the Ethereum price gave a bearish breakdown from the support trendline of the megaphone pattern. This breakdown was supposed to extend the prevailing correction phase but instead, the price action went sideways indicating a lack of conviction from the sellers. Moreover, the buyers took advantage of this uncertainty, and push the price back into the chart pattern, signaling a bear trap scenario. Should you buy now?
Also Read: Ethereum Price Doldrums: How to Survive Second Stage Capitulation
Ethereum Price Daily Chart
- The ETH price reclaiming the support trendline set a bullish upswing of 8%
- The recently reclaim daily EMAs(20, 50, 100, and 200) could offer additional support to crypto buyers
- The intraday trading volume in Ether is $6.9 Billion, indicating a 16% gain.
Source- Tradingview
Amid the increasing uncertainty in the crypto market, the ETH sellers failed to provide a suitable follow-up to the support breakdown of August 2nd. The coin price has nearly a week of period to push the price lower, the sideways action indicated weakness in bearish momentum.
As a result, the buyers eventually raised the coin price higher with a daily candle closing above the breached trendline. This breakout marked the prior breakdown as a fake or trap, offering market bull a better opportunity.
With an intraday gain of 0.53%, the coin price provides a suitable follow-up, suggesting a potential upswing in the near future.
Can ETH Price Recuperate Bullish Recovery?
The bear trap scenario offers buyers to counter with a stronger comeback. If the Ethereum price currently trades at $1869 and if it manages to sustain the reclaimed support, the buyers could drive the price 8% higher to hit $2020, followed by $2137.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
