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Ethereum Prices Drops 6%, Is The London Hard Fork-Induced Rally Over?

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Ethereum price prediction cryptotelegram

Without a doubt, Ethereum is one of the top performers–even surpassing Bitcoin.

Against all odds, ETH is in green in the last trading month, adding an impressive 6.7X year-to-date, a feat considering the plunges of May through to July 2021.

After more than halving, sinking below crucial Fibonacci retracement levels in the last few months, ETH prices rebounded from late July to early August. With a clear bullish reversal pattern from July 20, it was under these price conditions that swing traders would have taken their chances to ride the trend and make money.

Of course, the rejuvenation was due to fundamental events—especially the run-up to EIP-1559 and London hard fork.

However, there are hints of Ethereum buyers slowing down. The question remains: Is the Ethereum uptrend over? Are ETH/USDT bulls exhausted? And was this a dead cat bounce?

Or, being positive:

Is this a pause before trend continuation?

Concerns are forcing ETH/USD traders to ask these hard, unsettling questions from a pricing perspective.

First and foremost, the Ethereum price is down six percent on the last trading day. The result in the daily chart is a three-bar bear reversal pattern.

Accompanying this correction is an uptick in trading volumes. It is crucially pushing ETH prices below the middle BB in the 4HR chart. Some optimistic traders are scaling back, playing their cards close to their chest. Already, a section of trades is unwinding their longs, booking profits after over two weeks of higher highs.

Second, beyond today’s draw-down and the concerning close below the middle BB, there is a concerning bearish divergence in the 4HR chart.

How does this happen?

Ethereum Price 4HR Chart for Aug 12

Notably, Ethereum price gains of the last ten days are with decreasing momentum. These ETH/USD higher highs with dropping momentum and drying trading volumes mean the uptrend wasn’t supported.

Therefore, it is not surprising that ETH prices dumped below the middle BB. Notably, the follow-through of the NY session of August 12 is with high participation levels, as the volumes bar in the second chart in the 4HR chart reveals.

The question now: Is the EIP-1559 and London Hard fork induced rally of late July 2021 and August 2021 now over?

At the time of writing, ETH bears were pressing lower. Complicating the situation for Ethereum bulls is the rising trading volumes signaling the presence of sellers in the 4HR chart.

Zooming to the daily chart, there are lower lows relative to the upper BB—one of the best cryptocurrency technical indicators.

Ethereum Price Daily Chart for Aug 12

Additionally, the uptrend seemed labored, and the break-above $2.9k unconfirmed as prices consolidate.

While swing traders might struggle to find opportunities, the field is wide open for scalpers who might take longs in smaller time frames, aligning themselves with the uptrend.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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