Ethereum price turns bearish but a ‘cup and handle’ formation eyes $6.5K

Ethereum prices turned bearish for the day as traders also witnessed a 3% fall in BTC, according to TheCoinRise's reports
Ethereum prices turned bearish for the day as traders also witnessed a 3% fall in BTC, according to TheCoinRise's reports

Ethereum prices turned bearish for the day as traders’ also witnessed a 3% fall in BTC, according to TheCoinRise’s reports. While cryptocurrencies continue to make a mark on a global scale, the second-biggest cryptocurrency is undergoing a correctional phase. 

According to the data from CoinMarketCap, the Ethereum token remains bearish for the day with a 6.49% price drop as of 7:34 PM GMT. The daily candle opened at $4259 today, followed by a daily low of $4096. The daily high was witnessed at $4320. 

On the other hand, the trading volume of the ETH/USDT trading pair rose by 33.53%, followed by a fall in the market cap of 4.51%. The dominance of the token rests at 19.2%, and the current scenario presents great buying opportunities. But is the dominance enough to flip Bitcoin? TheCoinRise doesn’t think so.

Ethereum price analysis and targets

As per the diagram below, the weekly chart of Ethereum displays a cup and handle pattern. This pattern follows a rally. We saw an Ethereum rally in April-May, as the price action carved out a bottom with a bearish drop. 

This was followed by another rally starting in August, leading to higher prices. The breakout zone is witnessed at $4100. The best entry point is the breakout point. The cup and handle formation is complete since we saw a new all-time high when prices broke above this breakout zone. 

The target will be the length between the top and bottom of the cup, which puts the price target at $6,500.

Ethereum price analysis
Ethereum chart by TradingView

The prices are currently dropping below the 50-day Moving Averages. However, the candle is yet to close below this level, and we can expect this line to act as support. On the other hand, the 100-day MA continues to act as support, traversing below the price fractal.

The price currently rests in the lower end of the Bollinger Bands, suggesting a breakout from the lower region, leading to lower prices.

Ethereum price chart
Ethereum chart by TradingView

The RSI levels are aiming to enter the oversold region as the price gradient is negative and lower prices are possible.

A surge in selling pressure is also indicated by the MACD indicator, which shows that the MACD line (blue) continues to progress below the signal (orange line).

Ethereum price analysis
Ethereum chart by TradingView

On the whole, the price analysis is bearish for today. However, if the cup and handle formation on the weekly chart comes into play, Ethereum might break the current all-time high, which TheCoinRise covered a few days earlier.