Ethereum Price Analysis: ETH/USD prints a bearish pattern as strong reversal brews

Ethereum price recovery grinds into a halt at the $200 level as the sellers’ grip becomes stronger.
ETH/USD reversal ‘becomes apparent with the formation of a rising wedge pattern.

Ethereum has been among the best performing cryptoasset in the digital asset market since the ‘black Thursday’ crash in March. The second-largest cryptocurrency climbed above several key areas including $170 and $180. Buyers have also confidently tested the critical resistance at $200. However, a minor the bullish momentum hit snag before penetrating the seller congestion zone. Instead, ETH/USD has corrected lower to trade at $194 at the time of writing.

Ethereum’s rising wedge pattern

Ethereum recovery has formed a rising wedge pattern clearly visible on the daily chart. A rising wedge pattern is a textbook example of a reversal pattern. It is not always accurate but it culminates in price correction 60% of the time. Although, the RSI is not overbought, its retreat hints that bears are gaining traction. Therefore, if Ether fails to rise above $200 soon, it might be difficult to hold it above $180.

The widening gap between the 50-day SMA and the 200-day SMA also hints that bearish influence is growing. The same moving averages are expected to function as support areas if the reversal described above occurs. Other key support areas include $190, p$180 and $170.

ETH/USD daily chart

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