In today's technical analysis, I would like to focus on cryptocurrency, and Ethereum in particular. On the chart, we can identify an ascending triangle pattern, a classic formation characterized by a horizontal resistance (marked in yellow) and a rising dynamic support (marked with a black line). This setup is typically bullish and implies growing buying pressure, usually leading to a breakout to the upside.
However, what unfolded yesterday throws a wrench into the typical pattern outcome. Ethereum attempted to break above the horizontal resistance, but buyers were quickly overpowered. This rejection resulted in a shooting star candle on the daily chart, which is highlighted with a red rectangle. The long upper wick of this candle is a clear signal of strong seller presence at higher levels.
Today, the price is moving slightly lower and is already testing the lower boundary of the triangle—the dynamic black uptrend line. So far, this support has held and a minor bounce is visible. However, in light of the bearish reversal signal from yesterday's candle, the expectation is that this support could eventually give way.
A confirmed break below the dynamic support line would mark a clear sell signal, opening the door for deeper declines. While we are not there yet, the current sentiment leans bearish and the coming sessions will be key to determine whether this pattern fails or finds a new wave of buyers.