Over the last week, Ethereum has been trending sideways for quite some time now., leaving traders uncertain about what positions to take on the altcoin. Over the previous 3 months, for that matter, Ether prices have been moving sideways, without showing a clear bullish/bearish indication.
This leaves uncertainty around whether the Ethereum coin price is bearish or bullish. This week, following a fairly gloomy Saturday/Sunday – that uncertainty is all set to end.
The Inverse Pennant (Think of an inverse pennant as a triangular flag, but turned upside down) pattern that Ethereum has been showcasing so far, offered a brief period of consolidation. The prices seem to stabilize before continuing with the bearish sentiment.
However, that will end now, as we’ve reached the peak of the triangle.
The bearish sentiment that was pertinent before the lull, what we call “the trapped bear sentiment” will now continue, and we can see as much as a 14% downtrend in the prices of Ether.
The moving averages also seem to be against Ethereum, despite a fairly neutral RSI (Relative Strength Index) of 40.88. For your reference, when the RSI is over 70, it’s considered to be overbought, and if it’s below 30, it’s considered to be oversold.
It is important to note that there is a non-zero possibility that, due to the formation of symmetrical triangles, there is a possibility of the price breaking the upward resistance trend – but by all the other present indications, it is a safe bet to take a call on Ethereum going bearish.