Ethereum risks ‘bull trap’ after 25% ETH price rebound
Ethereum risks ‘bull trap’ after 25% ETH price rebound #Ethereum #risks #bull #trap #ETH #price #rebound Welcome to JibGlobe, here is the new resources we have for you today:
Ethereum’s token Ether (ETH) could be entering a “bull trap” zone after rebounding back above the $1,000 mark from 18-month lows of $885.
Ether price paints a “rising wedge”
The first among these indicators is a “rising wedge,” a classic bearish reversal setup that forms after the price trends upward inside a range defined by two ascending but converging trendlines. The wedge setup gains further confirmation if the trading volume drops alongside the rising prices.
Theoretically, a rising wedge resolves after the price breaks below its lower trendline and eyes a run-down toward the level at length equal to the maximum height between the wedge’s upper and lower trendline
Ether has been forming a rising wedge since mid-June, as shown in the chart below.
ETH/USD four-hour price chart featuring ‘rising wedge’ setup. Source: TradingViewHence, its interim bias appears to the downside, with a decisive breakdown below the lower trendline risking a decline toward the $870–$950, depending on where the breakdown begins.
That means a 15%–25% decline from June 13’s ETH price.
$70M exits Ethereum funds
Ethereum’s bearish case is supported by evidence of significant outflows from investment funds.
Notably, Ether-related investment products witnessed outflows worth $70 million in the week ending June 17, according to data fetched by CoinShares.
Notably, this was the eleventh-straight week of capital withdrawals, bringing the year-to-date outflow total to $458.6 million.
