Ethereum price analysis isn’t really required to read that Ethereum (ETH) price has been trading in an uncertain pattern across the daily frames.
As we can observe that the price has seen more than a few ups and downs in the last ten days. On July 30 Ethereum price fell to two hundred and three dollars ($203), but price started rising steadily.
Then the price reached two hundred and thirty-six dollars ($236) by August 5 and rose to two hundred and forty dollars ($240) dollars by the next day.
However, the bulls did not last as the price plunged minutes after it had risen to the two hundred and forty dollars ($240) mark.
Across the short-term charts with two-hour frames, we can observe an ascending triangle has been supporting the price action since mid-July. This is a bullish pattern which makes the occurrence of a breakout much more probable.
However, the price is currently trading extremely close to the resistance line of the triangle. Although price had broken above the triangle before the price could not manage to close above and fell back inside the triangle shortly. Before the price dropped the RSI showed a bearish divergence.
The price has been trading near the two hundred and thirty-six dollars ($236) mark for the last two days even so the RSI has been delving deeper and deeper towards the bears.
A closer observation shows the characteristics of a false bullish breakout.
The first two arrows show that resistance has formed there even, so the next day price rises to two hundred and thirty-six dollars ($236) once again.
This time a breakout occurs but a very short one in which the price rose to two hundred and forty ($240) then fall back to two hundred and thirty dollars ($230). Moreover, the volume rose suddenly during that one hour, confirming the idea of a false breakout.
Price action is likely to fall below to the support line of the triangle. The price of ETH has been trading in an ascending triangle, and now it is likely to fall to its support line.