Ethereum Price Analysis: ETH/USD bulls rally back and on the verge of a breakout?

• ETH/USD price went down slightly from $165.35 to $164.75 this Friday.
• ETH/USD maybe on the verge of charting a morning star pattern.

ETH/USD bulls rallied back against the bears this Friday. The bears managed to eke out an advantage and bring the price down slightly from $165.35 to $164.75. The last two sessions indicate that the market maybe on the verge of a morning candle pattern.

A morning star is a 3-candle bullish reversal pattern which forms after a decline in the price. The three candles look like this:

• The first candle is bearish.
• The second candle has a minimal bearish or bullish range.
• The third candle exhibits an aggressive upwards movement.

Why does it do that?

• The sellers are in control as the price closes lower in the first candle.
• The second candle is an intriguing one as the buyers and sellers pretty much cancel each other out here.
• In the third candle, the buyers completely take over and close the price higher.

The morning star pattern tells you that the sellers have been exhausted after fighting with the buyers and the market is now bullish. The ETH/USD chart looks like it maybe on the verge of charting that exact pattern.

ETH/USD Daily Chart

• If the ETH/USD bulls can dominate on Saturday, then it will complete the morning star pattern.
• The market is trending above the 200-day simple moving average (SMA 200), SMA 50, and SMA 20 curves.
• The signal line has taken a turn and is about to converge with the moving average convergence divergence (MACD) line in the MACD indicator. This shows decreasing bullish momentum.
• The two latest sessions of the Elliot Oscillator is bearish.