VOT Research Desk
The price of Ethereum is in a phase of consolidation as it remains below a significant resistance level.
Despite the likelihood of a fast upward movement to gather liquidity, traders should not mistake this for a bullish directional bias.
Between November 8 and November 10, the price of Ethereum fell by 33% when the FTX exchange shut down over an alleged money-laundering scandal.
A local bottom was formed at $1,073 as a result of this bearish movement, allowing buyers to acquire ETH at a discount, sparking a 25% recovery bounce.
The midpoint of the $1,073 to $1,607 range, $1,340, was not successfully surpassed, which caused the price of Ethereum to retrace and begin its consolidation.
Due to the narrowing of the range, there were two lower highs and three equal lows. When trend lines are used to link these swing points, it reveals a configuration for a descending triangle.
By calculating the distance from the breakout point at $1,191 to the first swing high and swing low, this Ethereum price formation predicts a 9% decline to $1,073. Therefore, a flip of the aforementioned support level serves as the trigger for traders.
