Ethereum Consolidates Sideways, Forms New Pattern: What To Watch As The Crypto Works Toward Apex

Ethereum ETH/USD was rebounding more than 1% higher during Wednesday’s 24-hour trading session as the crypto continued to trade sideways. The move came in tandem with Bitcoin BTC/USD, which was consolidating a three-day upswing with an inside bar pattern.

Ethereum has been trading in a fairly tight trading range between $1,823 and $1,943 since April 5, when the crypto topped out at the upper area of that range. The sideways pattern has formed Ethereum into a rising wedge pattern.

The pattern is considered to be bearish, although it’s possible Ethereum will break up from the upper ascending trendline of the pattern or negate the wedge by continuing to trade sideways. Bearish traders can watch for Ethereum to break down from the wedge on higher-than-average volume to indicate the rising wedge was recognized.

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The Ethereum Chart: Within the wedge, Ethereum negated its uptrend on Tuesday by printing a lower high. Ethereum continues to print higher lows, however, with the most recent higher low formed on Wednesday at $1,855.

• The eight-day exponential moving average (EMA) has been guiding Ethereum higher since March 13, which is bullish. If Ethereum closes below the eight-day EMA, it could be a good place for traders in bullish positions to lighten or close their position.
• Ethereum is set to meet the apex of the wedge on April 18. If the crypto continues to trade sideways after that date, the pattern will be negated and traders can watch for an alternative pattern to form. If Ethereum breaks up or down from the wedge on higher-than-average volume, both bullish and bearish traders will be able to gauge the future direction.
• Ethereum has resistance above at $1,957 and $2,150 and support below at $1,846 and $1,717.

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