- Ethereum price enters the new week in consolidation above $120.
- The symmetrical triangle pattern presents both bullish and bearish scenarios that must be carefully watched for a breakout.
Volatility in the cryptocurrency market is still at peak despite the weekend session being relatively stable. Ethereum price managed to hold above $120 over the weekend, however, the increased selling activity on Monday has pushed ETH/USD to $119.84 (intraday low). The price is teetering at $122 at the time of writing. ETH/USD has lost 1.26% of its value on the day amid the prevailing bearish trend and high volatility.
Ethereum’s immediate upside is capped by the 50 SMA on the 1-hour chart while the 100 SMA in the same range is holding the ground at $131.33. Following the dip to $90 last week, Ethereum price has been in consolidation above $120 but upward movements have been capped under $140.
The symmetrical triangle pattern
The formation of a symmetrical triangle pattern introduces a dilemma. Will Ethereum break the triangle resistance and push towards $140 and $150 or a breakdown under the triangle resistance is the most probable direction to be followed especially with the prevailing selling pressure across the market? However, what traders can do is to observe the RSI’s movement and watch for a confirmed breakout. Movements to the north will depend on improved sentiments towards Ether and increased trading activity observed by monitoring the trading volume.
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