ethereum faces uncertainty
  • Bullish vs Bearish - 45%
  • Confidence - 60%

Ethereum is currently sitting above crucial support of $117 and is forming what currently looks like a bear flag. Any break down of the $117 support level and a daily close below it would be extremely bearish with the likelihood of revisiting 2018 lows around $83 a legitimate possibility.

The big question is whether the current pattern is consolidating as part of the upward move that started in mid December and hit the ~$165 mark or is it a continuation pattern that is a part of the bearish move from $165 in early January.

The key confirmation triggers for either scenario are daily closes above $142 and below $117 which would validate bullish and bearish breakouts respectively. The declining volume is currently favoring the bears as price hovers in the $120’s. However, a sudden uptick in volume is not out of the question.

A fundamental factor that might also have an affect on price movements is the upcoming Ethereum hard fork which was recently delayed for another 2-6 weeks due to potential security issues. We believe that this increased bearish sentiment among investors as fears of potential Ethereum security issues permeate throughout the crypto community.


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