The price is Ethereum (ETH) has depreciated by more than 10% against the US dollar, as the global cryptocurrency market has undergone a massive correction.
ETH fell and is now worth $255 according to the average price on CoinMarketCap. The asset has experienced a small pullback from its intraday low of newly acquired but was not able to expand it to cover intraday losses. Price movement, in General, was weak, indicating that the Ethereum can continue its downward movement and to test new lows.
On the eve of his correction Ethereum established a high year to date at $288,77 on Coinbase. However, the level suffered huge mood for sales, probably because traders could exit their long positions to get a decent intraday profit. The price is thus returned to its prevailing bullish pennant, as shown on the chart above.
Price Ethereum fluctuated between the formation of a bullish pennant before the test, $288,77. The price surge came as a breakthrough, which, by definition, a bullish pennant could push the Ethereum so high, what is the height of the flagpole pennant. On the above chart, this altitude is around $135.
But the breakthrough proved to be fake. Price Ethereum went back inside the same structure pennants, indicating that she plans to continue fluctuations within the range. Ideally, the price should follow the direction of its previous trend is bullish. In addition, following the upside breakout, if it is accompanied by an increase of volume should take the price of the Ethereum at least $135 above. This can cause the exchange rate of ETH to the dollar close to $400.
Bullish pennant, as shown above, also meets the criteria of a symmetrical triangle formation, the two trend lines with similar slopes. Although the price action in the range is the same in both technical models, the breakthrough scenario is different. In a symmetrical triangle breaking target is the height between the initial maximum and the initial minimum. In the case of Ethereum, the height is about $65.
Thus, if the price will break above resistance of the triangle, and Podgoritsa growth, it will set a goal breakthrough $65 above from the point of interruption, may cause Ethereum to $350.
Meanwhile, market fundamentals also support the bullish case, because the network Ethereum is watching the growth in the number of daily transactions in may. The last time the network activity Ethereum was so high in January last year, when it raised the price to $1400.