FX.co ★ Ethereum remains under pressure

Ethereum recently broke out of a triangle pattern and provided us with a bearish signal. In our last analysis we noted that after the rejection of the back test, the bearish scenario was stronger and we were expecting price to move towards $1,700 and lower. Today price is trading just above $1,700.

Ethereum is making lower lows and lower highs. Price is clearly in a bearish trend and is heading towards the 161.8% Fibonacci extension of the first leg down at $1,580. The RSI is showing some bullish divergence signs but there is no reversal confirmation yet.

Red lines - triangle pattern

Blue lines- base of triangle= size of decline expected

According to the triangle breakdown, the size of the decline should equal to the size of the base of the triangle. In this case our target is at $1,590-$1,600. Both views have similar targets below $1,650.