The ETH chart shows a potential reversal
Ethereum may break the $2,600 level as Bitcoin recovers. Ethereum is about to form a morning star pattern after a 0.72% daily increase.
Will Ethereum's bullish run end with a breakout at $4,000? Let's find out.
The daily Ethereum price chart shows the collapse of a descending wedge. Ethereum has broken below the 50% Fibonacci barrier at $3,315 down to $2,600, the key support level.
Ethereum is currently trading at $2,647, up 0.72% on the day. This indicates a reversal based on the morning star pattern to retest the broken trend line.
From the oversold boundary and the local support trend line, the daily RSI is about to bounce back, supporting the bullish reversal. Despite the positive momentum indicator, the 50 and 200 EMA lines are nearing a Death Cross. This triggers a sell signal according to price action indicators.
Ethereum breakout needs $2,600.
Ali Martinez illustrates his long-awaited bullish channel pattern as Bitcoin maintains dominance above $2,600. In his Ethereum X article, the cryptocurrency expert predicts the channel pattern will bounce to $3,000 to $4,000.
The bullish dominance at $2,600 remains key. His chart shows Fibonacci levels may collapse down to 61.80% at $2,275 when the price decreases.