All eyes have been on Bitcoin in recent weeks as it continues to consolidate. Ethereum prices have practically mirrored what its big brother has done and analysts have eyed a clear head and shoulders pattern which could lead to further declines.
Ethereum made it back over $260 a few hours ago but has started to fall back again during today’s Asian trading session. The 1.5 percent slide has taken ETH back around $255 which is still higher than it has been for most of the past week.
According to Coinmarketcap.com Ethereum did drop below $230 briefly on Monday when crypto markets saw red. For the past few weeks however ETH has been range bound, trading between $230 and $270, largely following the movements of Bitcoin which has been hovering just below $8k.
Ethereum Head and Shoulders Pattern Clear
As usual the analysts have been eyeing the charts looking for patterns and one has depicted the clear formation of a head and shoulders.
“Forgive my drawing skills, but this is a classic Head and Shoulders pattern. Now, patterns can fail, but this gives you an idea of what I am thinking and what will negate it.”
$ETH Daily Chart
Forgive my drawing skills, but this is a classic Head and Shoulders pattern. Now, patterns can fail, but this gives you an idea of what I am thinking and what will negate it.#ETH pic.twitter.com/O7UguanTpR
— CryptoFibonacci (@CryptoFib) June 14, 2019
The pattern is a classic bearish reversal which usually leads to further declines below the neckline, currently at around $230 which is also the bottom of the recent Ethereum trading range. ‘CryptoFibonacci’ has also noted a classic volume decline which usually accompanies this pattern. Since the beginning of the month ETH volume has declined from over $13 billion down to $8 billion where it currently remains.
A break above $275 and retest of $280 could negate the pattern but that is only likely to happen if Bitcoin can break $8,200 and hold above it.
Not all are bearish though, full time crypto…