On Monday, the Ethereum price is showing a decline. It dropped to a low of $595, but at the time of publication has recovered to the area of $612. Analysts associate the decline in prices with the beginning of profit-taking. Ethereum's price began to decline after the price peaked at around $677. Traders started taking profits during the European session amid growing demand for the US dollar.
If you look at the 4-hour chart of the ETH/USD pair, you will see that the price not only came close to the upper Bollinger Bands line but also closed above it. In such situations, traders often start selling the asset. Likewise, if the price approaches the bottom line or falls below it, then traders start buying the asset. The middle line, a simple moving average, acts as a bias indicator.
However, if you look at the weekly chart of the ETH/USD pair, you will see that the current bearish correction is part of a broader upward movement. The ETH/USD pair is forming a rising wedge. She has been in this wedge since July of this year. And apparently, we will see the continuation of the movement of the ETH/USD pair within this wedge. In case of a decline, the ETH/USD pair may roll back to the weighted moving average, which will provide support around $500. After that, the pair will try to test the upper boundary of the rising wedge again.
If the uptrend continues, the ETH/USD pair may reach $980.