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- 1 ETHW price is making a head and shoulder pattern indicating an upcoming bear trend
- 2 ETHW might take a correction of 7% within the upcoming days
Ethereum PoW seems to be taking a critical resistance from the price of $4.22 while making a head and shoulder-like pattern after taking resistance ETHW can take a drawdown of 7 % in recent days. The price of ETHW is $3.88, at press time.
ETHW making a head and shoulder pattern
ETHW can take a drawdown of about 7 % in recent days. The market sentiments regarding the ETHW seem to be turning bearish while the greed and fear index of the market is currently bowing towards the greed side at 56 points. The market emotions might soon start going towards bearish sentiments according to the price action.
Technical Analysis (1-day timeframe)
The ETHW price is currently taking resistance from the 100 EMA while the 20 EMA seems to be giving a bearish crossover to the 50 EMA. The price is also given close below the key average of 50 EMA. These all indications are giving signals toward an upcoming bearish move.
The price of ETHW is currently making a head and shoulder pattern where the price after getting rejection from one price level attempts a second time to cross above it but after not being able to sustain on those levels price again takes rejection from the neck of the head pattern making a head and shoulder like pattern.
Here the price is currently making the shoulder pattern around $4.225 and the head pattern around $5.00.ETHW price’s recent support is around levels $3.57 and $3.36 dollars below it while the current resistance is 9% above ETHW’s current price of around $4.22.
While the ETHW’s price is moving horizontally the RSI line is making a downward slope while making continuing lower highs and lower lows as of now around point 49.33 while its 14 SMA is trading just below it around point 49.08.
Conclusion
ETHW price is showing signs of making a divergence while the price action of Etherium PoW is going sideways. Although the price action is also making a head and shoulder pattern which is a bearish reversal pattern suggesting the price might soon make a downtrend. While the EMA’s are providing critical resistance to the ETHW which is trending below the key average the 100 EMA while 50 and 20 EMA are also suggesting a bearish crossover.
Technical levels
Support – $3.57 and $3.36
Resistance – $4.22.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
