The native token of Ethereum, Ether, has already been going through its uptrend against Bitcoin as the euphoria around its upcoming network upgrade increases.
The Ethereum exchange surged to an intraday high of 0.075 on the 6th of August, which then followed an upside move of 1.5%. At the same time, the pair’s gains also came at the same time as a part of a broader rebound trend that began a month ago at 0.049- which amounted to approximately 50% gains. The recovery of the exchange was also in part due to the Merge, which would have the cryptocurrency move from proof-of-work mining to a proof-of-stake mining system. From a technical perspective, Ether is currently staring at potential interim losses with the exchange painting quite a convincing rising wedge.
Ethereum Price Has Started Climbing Upwards
Rising wedges, for those who are unaware, are usually bearish reversal patterns that tend to occur when the price trends get high inside a range that is defined by two converging, rising trendlines. They also have resolved after the price breaks fall below the lower trendline by as much as the maximum height of the structure. Also, a relative strength index coupled with a declining volume against a rising exchange would also increase the divergence risks that are bearish. This further gives weight to the bearish setup for a target of 0.064 BTC, or down by 11% from the price.
At the same time, the technicals have also painted a brighter picture for Ethereum against the US dollar. The potential of a breakout of 10% for the exchange looks quite strong in August- especially due to a classic bullish reversal pattern in place. The exchange has gone on to form what does appear to be a double bottom. This pattern resembles the letter W due to a couple of consecutive lows which are followed by a complete shift in the direction from downtrend to uptrend.