- Bullish vs Bearish - 45%45%
- Confidence - 60%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.