Yesterday, I mentioned that another attempt at breaking the $340-$345 resistance zone was underway. That wave of push was rejected. Today, a third attempt was again rejected.
Each time, the highs are lower but the lows are somewhat higher. This forms the rising wedge pattern we identified yesterday. Usually, if a resistance is not broken after three attempts, the bulls will have been exhausted. From the MFI as well as the volume, we can confirm this. In the short-term, therefore, it is quite possible that ETHUSD will seek consolidation at a lower price range, perhaps around $300.
Looking at the longer time period, this potential drop may also lead to a "double top" (the other one being the September top. The neckline is around $280.
Each time, the highs are lower but the lows are somewhat higher. This forms the rising wedge pattern we identified yesterday. Usually, if a resistance is not broken after three attempts, the bulls will have been exhausted. From the MFI as well as the volume, we can confirm this. In the short-term, therefore, it is quite possible that ETHUSD will seek consolidation at a lower price range, perhaps around $300.
Looking at the longer time period, this potential drop may also lead to a "double top" (the other one being the September top. The neckline is around $280.
