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December 5, 2022
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Ethereum long-term price analysis

Ethereum analysis shows that possible formation of a triple top should keep traders aware

On May 28, when the Ethereum rose 8.75%, the second largest digital asset has surpassed the $ 226 resistance. Now, in the past five weeks, the asset has managed to maintain consolidation between $ 227 and $ 250, albeit with a small decline on June 24. , when the coin fell below the mentioned range for 5 days. However, things may be taking a drastic turn in the markets, as a long-term pattern seems likely to complete the training in the near future.

12 hour chart

ETH / USD by: TradingView

According to the above analysis, Ethereum’s valuation has fluctuated within the trend lines of a growing wedge since 28 June. The highest tops were seen at $ 232 and $ 247, where the lowest funds were seen at $ 216, $ 224 and $ 236. With the price hovering close to the lower trend line of the pattern after a partial appreciation on 13 July, the possibility of a retraction looks great on the charts.

Therefore, a $ 226 re-test may be evident in the next two weeks. A stronger bearish moment could drive the price up to $ 216. The Relative Strength Index or RSI remains on the decline, indicating that selling pressure is taking control. The long-term pattern that may dictate the direction of the price next month is shown below.

Daily chart

Ethereum long-term price analysis 23

ETH / USD by: TradingView

Since the end of June, Ethereum’s price can be seen testing the resistance at $ 250 for a total of three times. As the asset falls to support $ 216, a triple top pattern will be confirmed, which could have major bearish implications. Failure to break resistance at $ 250 would discourage buying pressure if the price drops to $ 216. With a higher trading volume evident in the current range, the likelihood of a confirmed triple top is not yet concrete, but the possibility remains.

However, the fact that the 200-period moving average continues to act as strong support should keep the asset ready to undergo a recovery after the current correction period, but still, a strong retracement is not yet out of the picture.

In summary, Ethereum will possibly test $ 226 again by the end of July or the third week of the month.

Source: AMBCrypto

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