Ethereum has been able to guard against seeing any major losses in the aftermath of its reject rejection in the $250 region
It is important to note that it has been slightly outperforming Bitcoin in the time since, with this being a major sign of strength
Its independent momentum, however, has stalled as of late, leading analysts to note that this could be a bearish sign
ETH could also be forming a trend reversal pattern that, if confirmed, could catalyze major downside
Ethereum and the aggregated crypto market have shown some signs of weakness as of late stemming from the massive rejection faced earlier this week.
The decline following this taking place has not been too intense, however, with buyers being able to guard against this sparking a full-blown trend reversal.
This current strength may not be enough to catalyze any sharp uptrend, as ETH is showing some signs of weakness at the present moment.
In addition to a bearish broadening wedge that the crypto may be falling into, analysts are also pointing to the emergence of a potential trend reversal formation.
This pattern has yet to be confirmed, but any further near-term downside could validate it and cause Ethereum to erase many of its recent gains.
Ethereum Flashes Signs of Weakness as it Falls into Bearish Technical Pattern
At the time of writing, Ethereum is trading up just under 2% at its current price of $243, marking a notable upswing from its recent lows of $230 that were set at the bottom of the recent decline.
Currently, ETH is only trading down slightly from highs of just over $250 that were set at the peak of its recent uptrend.
Although its ability to climb back towards this level is a positive sign, analysts are also noting that it is currently caught within a bearish technical pattern.
One analyst spoke about this while pointing to the crypto’s 4-hour chart, explaining that the crypto could be caught within a broadening wedge.
“ETH / USD H4 TF- Ethereum, we could potentially see a Broadening Formation pattern play out here.”
Image Courtesy of Escobar
The downside target on the above chart sits around $210.
ETH Could Post a Full Trend Reversal if This Scenario Plays Out
Ethereum could soon post a full trend reversal pattern if it declines from its current price levels.
A popular analyst spoke about this in a recent tweet, explaining that although he doesn’t expect this to play out, it is a possibility that he is carefully watching.
“4h ETH… not expecting a bearish reversal but def watching this closely,” he said while pointing to the chart seen below.
Image Courtesy of Josh Olszewicz
Bitcoin’s price action could hold some heavy sway over that of ETH in the days to come.
If BTC declines from its current price of $9,700, it may cause Ethereum to invalidate its newly established uptrend and post some far reaching losses.
Featured image from Shutterstock.
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