Right now’s Ethereum worth chart might recommend the formation of a bearish sample referred to as the “double high”. 100k ETH additionally flowed into Binance.
Ethereum Worth Chart Exhibits Well-known “Double High” Bearish Formation
As defined by a CryptoQuant post, the cryptocurrency shaped a bearish sample on the worth chart earlier at the moment, and at about the identical time, Binance additionally seen a netflow of round 100k ETH.
Here’s a Ethereum chart that clearly reveals the bearish sample:
ETH's worth chart confirmed a bearish formation earlier at the moment | Supply: CryptoQuant
Because the above chart reveals, Ethereum appears to have shaped what’s popularly referred to as the “double high” sample. Traditionally, formation of such peaks has been a bearish sign.
Nonetheless, a double high can’t be confirmed till the worth drops under the assist stage marked by the dip between the 2 peaks.
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The above chart was really posted by the analyst a number of hours in the past. A newer model of the chart appears to be like one thing like this:
ETH's worth continues to indicate volatility | Supply: ETHUSD on TradingView
It appears to be like like proper after forming the 2 peaks, the worth appears to have crashed all the way down to $3.2k, which is under the three.3k assist stage.
Most often, such a dip confirms that the formation is a bearish double high. Nonetheless, right here the worth appears to already be transferring again up the assist stage.
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Following a double high occasion, the assist stage turns into resistance in order that the worth stays under it for some time. It’s doable it might simply be a shoulder formation, and that the bearish development may nonetheless be energetic.
Although the alternative is also true; the worth may hold going again up as an alternative. Nonetheless, one other bearish sign additionally went off…
About 100k ETH Flows Into Binance
Across the similar time that the 2 peaks shaped, the netflow indicator for Ethereum confirmed that about 100k ETH flowed into the crypto alternate Binance.
The “netflow” is a metric that reveals the online quantity of cash transferring into or out of exchanges. It’s calculated by merely taking the distinction between the inflows and the outflows.
When the indicator takes a adverse worth, it means extra ETH is transferring out than in, whereas a constructive worth implies the reverse.
Here’s a chart that reveals the Ethereum netflow for all exchanges:
The ETH netflow spikes up | Supply: CryptoQuant
The spike on the chart reveals that about 100k ETH flowed into exchanges, and chain information confirms it was into the crypto alternate Binance.
Such a constructive spike typically implies traders are going through heavy promoting stress, and thus they’re sending their cash to exchanges for dumping them.