In the past few days, ETH has been trading in a descending wedge. The next major move is likely to come when price breaks out of the pattern.

• Major support levels: $ 3,600, $ 3,300
• Major Resistance Levels: $ 3,850, $ 4,000

ETH has tried to stay above the critical support of $ 3,600. Since then, the price has been moving towards the resistance line of the wedge (marked in blue on the chart), which is likely to act as resistance. Currently, that level is around $ 3,850.

If the bulls manage to break the wedge, ETH can retest the $ 4k resistance.

ETH / USDT daily chart | Source: TradingView

Technical indicators

Volume: Trading volume has remained low since ETH tested key support at USD 3,600. The bears are still in control and ETH is likely to fall again due to a lack of momentum.

RSI: The RSI is falling and making a lower low. This is a bearish sign and is unlikely to change until price breaks above the wedge.

MACD: Although the daily MACD is falling, its histogram has made a higher low, which represents a bullish divergence and will be confirmed when ETH breaks above the wedge.

ETH / USDT daily chart | Source: TradingView

Perspectives

The trend at ETH is downward. That trend could change if ETH breaks above the high volume wedge.

Short term price forecast

ETH is in a short-term downtrend. It may fall into the wedge for a few more days. In the event the price drops below the wedge, ETH could retest the next big support at $ 3,300.

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