• Ethereum’s daily chart shows a falling wedge, a bullish reversal pattern.
• RSI bullish divergence suggests a potential breakout.
• The FOMC meeting today could bring heightened market volatility.

Ethereum’s price action is currently forming a falling wedge pattern on the daily chart—a historically bullish setup that often signals a breakout to the upside. This technical formation suggests that ETH may soon see a shift in momentum, especially with RSI (Relative Strength Index) bullish divergence appearing on the charts.

A falling wedge occurs when price action creates lower highs and lower lows within converging trendlines, often leading to a breakout when bullish pressure builds. If ETH follows historical trends, this could mark the start of an upward move.

RSI Bullish Divergence: A Positive Signal

The RSI indicator is showing bullish divergence, meaning that while price continues to decline, RSI is trending upward. This divergence often suggests weakening bearish momentum and an impending price reversal. Traders are watching closely for confirmation, such as a strong move above resistance levels.

FOMC Meeting Adds Volatility

The Federal Open Market Committee (FOMC) meeting today is expected to inject volatility into the market. Historically, Federal Reserve decisions on interest rates and monetary policy have influenced crypto prices. If the Fed signals dovish policies or rate pauses, Ethereum could benefit from a broader market rally.

What to Watch Next

• A breakout above key resistance levels to confirm the falling wedge pattern.
• Market reaction to the FOMC announcement, which could impact risk assets like ETH.
• Trading volume and momentum indicators for further confirmation of a bullish move.