Ethereum price risks losing $4K on ‘rising wedge’ breakout fears

The possibilities of Ether (ETH) going below $4,000 have risen following a selloff on Nov. 16.

In the midst of a market downturn driven by Bitcoin, ETH fell 10% to roughly $4,100. (BTC). Ether fell below its fourth-quarter upward trendline support as a result.

More Declines Ahead

Before rising higher, ETH/USD challenged its 50-day exponential moving average  as a fresh price bottom. If the 50-day EMA is broken, the next support line to watch is probably around $3,700.

The ascending trendline is part of a rising wedge, a technical pattern that many experts regard as indicating a bearish reversal. When the price moves inside a range established by two converging, rising trendlines, it emerges.

Analysts validate a wedge breakout when the price breaks below the lower trendline and is accompanied by an increase in trading volume. They usually look for a run down to the level with a length equal to the width of the wedge’s trendlines.

As a result of the rising wedge configuration, Ether has the potential to sink below $3,000.

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Retesting ascending triangle resistance as support

An ascending triangle counteracts the bearish reversal scenario created by the rising wedge formation, putting Ether at roughly $6,500 by the end of 2021.

Days after breaking above the triangle’s resistance level, the price of ETH retests it as support, forming a bullish setup.

This type of action often eliminates weak hands from the market, allowing traders/investors with a long-term upward perspective to profit from the asset’s solid fundamentals.

As ETH price approaches the triangle barrier below $4,000 — also the rising wedge’s bottom trendline — Ether’s recent drop may become taxing. If the market continues to rise, the price might reach $6,500.