On the higher-timeframe charts, Ethereum does not seem to be out of the bearish woods yet. The asset’s price is currently trading within a rising wedge and is being accompanied by declining volume. From a technical perspective, this is bearish in nature and signals that a breakdown could be on the cards for the asset.
However, Ethereum has managed to initiate a mild recovery over the past few hours. From its wick low of $1609 registered a day ago, the asset’s price is up by more than 2% already. Thus, ETH could sideline its bearish bias over the short term and initiate a bounce back from the lower trendline of the setup. If ETH stays above the current level during the weekend, then it could rise up to 19% over the next few days. However, it will first have to clear the $1789 resistance.
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Nevertheless, if ETH is not able to hold its ground over the weekend, then the odds of a breakdown will intensify. In such a scenario, $1514, and $1452 would be the levels to watch out for over the short term.
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The Weekend’s Role
Buying momentum has gradually been building up in the Ethereum market. Large holders’ net flows have been positive of late. Over the last three days, the reading of this metric has been hovering in the 8,000 ETH to 50,000 ETH range. The retail sentiment, however, remains to be dented. Aggregate exchange flows have been hovering in the green of late, indicating that a set of investors have already started cashing out.
Thus, activity over the weekend might play a pivotal role in determining the directional bias for Ethereum. If bulls come through successfully, then ETH will be on track to retest its May-July highs. However, if the sell orders stack up, then the asset would drop to its Q1 consolidation levels.
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