Cryptocurrency

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.

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