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The crypto market reacted wildly with a massive sell-off after shocking news came out of the Russian invasion of Ukraine last week. But since that initial panic sell-off, we have seen the crypto market stabilize and even rallied higher recovering some of the losses it made.
Ethereum was one of the leading cryptocurrencies in this relief rally, closing the week up +6%. Bitcoin on the other hand was only able to close the week up at around +3%.
But the main question traders are asking is can we expect to see this relief rally continue into next week or should we expect to see more crypto sell-off intensify due to the crisis in Ukraine?
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What Is Ethereum Doing Right Now?
The Ethereum price has been selling off for weeks but is currently stalling and trading sideways. This sideways trading is forming Converging Triangle Pattern on the 4-hour timeframe.
This pattern usually forms during a sideways market, where the buyers and sellers are still struggling to see who will dominate the market and eventually influence the direction of the trend.
And right now, traders are standing aside, waiting to see what the developments and investor sentiments would be like once the general traditional markets like (stocks, commodities, metals e.t.c) all open come Monday.
Until this happens, we can expect to see the ETH price continue to trade sideways, bouncing around within the converging triangle pattern.
What Can We Expect?
We know that Ethereum price and most other cryptocurrencies are correlated in a certain way to the Stock market. So if the Stock Market opens bearish next week and continues selling off, there is a very high probability that Ethereum would follow it.
And for the Ethereum price that would mean breaking out of the converging triangle pattern and heading lower in the coming days. This bearish breakout might look like the image below and could see us touching the $1,438 region.
Final Verdict!
The Ethereum price is still in an undecided state and will remain in that state as far as it continues to trade within the converging triangle pattern on the 4-hour timeframe.
However, that might all change come next week! If the trader’s and investors’ sentiment remains bearish in the traditional stock markets, there is a very high probability the Ethereum price will break down and crash.
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