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In our last analysis we warned traders that a bearish wedge pattern formation was in play for Ethereum. Today price broke down and out of the wedge pattern as expected and price is moving lower towards our first target of $2,000.
Blue line- bearish divergence
In our previous posts we also noted the bearish RSI divergence in Ethereum. Combined with the bearish wedge pattern, we warned traders that the most probable direction price would take was to the downside. Price is now at $2,140 and is approaching our first target of $2,000. Resistance remains key at $2,400 and as long as price is below this level, we will remain bearish.
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