Despite its widespread popularity, Ethereum continues to underperform compared to other top cryptocurrencies by market cap. Investors are experiencing losses as the price of ETH continues to drop. There is a looming threat of the price falling below $2,000 if the bearish trend persists.
Falling Wedge Pattern
One glimmer of hope for Ethereum is the formation of a falling wedge pattern on the price chart. This pattern typically indicates a potential reversal in trend. As the price rebounds from its recent lows, the falling wedge pattern is nearing completion, suggesting that significant movement is on the horizon.
Crypto analyst CobraVanguard has highlighted the falling wedge pattern in a recent analysis on TradingView. While this pattern can be bullish for an asset, it can also spell further losses for Ethereum. The analyst presents two scenarios for the altcoin’s price based on the current pattern.
Possible Scenarios
The first scenario involves a breakout from the falling wedge pattern on the 1-Day timeframe, which could trigger a substantial price increase for Ethereum. The analyst also notes a bullish divergence on the MACD, supporting the possibility of a breakout. However, if the price fails to break out of the pattern, a further decline is expected due to bearish pressure from large holders selling off their holdings.
A successful breakout from the falling wedge pattern could signal the end of the bearish phase for Ethereum. The analyst predicts that such a breakout could push the price of ETH as high as $3,000, representing a significant increase of over 30%. On the other hand, a breakdown in price could see Ethereum plummet below $2,000, with the analyst’s chart indicating a potential low of $1,778. Low volume for ETH adds to the uncertainty, potentially leading to a further drop to $1,500.
Through careful analysis of the current market conditions and technical patterns, it is evident that Ethereum is at a critical juncture. Investors should closely monitor the price movements and be prepared for potential volatility in the coming days. The cryptocurrency market is notorious for its unpredictability, and ETH is no exception. Only time will tell whether Ethereum will break out of its bearish trend and reach new highs or if further losses are on the horizon.