As the hype around DeFi wears off, the price of Ethereum also cools. After falling from the high of $480, the price of Ethereum entered the range of $325- $380 and has been moving in it for 10 days. As the price of Ethereum fell by almost 7% yesterday, it has evened out all the gains seen in the previous week.
On the hourly chart, the ETH/USD pair was able to form two upward pennants. Price broke down from the first large upward pennant and entered a new upward pennant. At the time of publication, the price is moving near the upper border of the pennant. The bulls are trying to revive the price of the cryptocurrency.
If we compare the new ascending pennant with the previous one, it is a continuation pattern. In this case, the ETH/USD pair will continue to move towards the previously defined targets at $356. In this case, sellers should set their stop loss at $375. The take profit level can be at two points, the first at $356. The second take profit is in the area of the strong support level of $336.
It should also be noted that if the price of ETH on a shorter timeframe changes, the rising wedge can also turn into a channel.
Yesterday, the analyst expected that if Ethereum closed the weekly candle below $360, then the ETH/USD pair could fall to $355, but the pair closed around $365. This showed a short-term conflict of market bias. If the pair drops below $360, then it will continue to implement the downward pennant scenario.