Hello all. Looking at ETHUSD on the daily timeframe , we see that the price of etherium trades back inside the falling wedge . With $2650 being a support level and also the weekly ascending line providing support for the etherium price, is etherium due to a bounce or will it drop further. Let us discuss.

Looking at the yellow ascending line, we see that etherium has bounce from line at $2650. While the rsi remains in the neutral position, staying above this support line is crucial for etherium. If we break this line of support, I will anticipate $1700 next for etherium.

On the other hand, Etherium remains inside the rising channel (white lines) which has a resistance target at around $3600. This can be a 37% trade if we manage to bounce right back up. Bigger bullish target for etherium is the top of the ascending channel shown with the yellow line and has a price target of $5600 (107% up).

For this scenario to play out, I would like to see eth price remain above the 100 week EMA , and also the rsi to head towards the oversold area.

Thanks for reading, and stay tuned. Enjoy.