Ethereum’s price performance was disappointing for most of May as the bears appeared to be in complete control. There doesn’t seem to be much change for the “King of Altcoins” in the new month and it appears to be just a continuation of the established downtrend. According to a popular analyst on social media platform X, the price of Ethereum could fall to around $1,850.
Is ETH price stuck in a descending channel?
Crypto analyst Burak Kesmeci joined the X Platform to share his predictions for Ethereum price in the coming days. Market experts hypothesized that if the second-largest cryptocurrency fails to break through the $2,033 resistance level in the coming days, it could fall towards the $1,822 to $1,850 range.
This bearish outlook is premised on the fact that sellers have had the upper hand for much of the past month, even in the short term. This dominance is evident in the formation of a descending channel on the 4-hour time frame of the Ethereum price chart.
A descending channel is a technical analysis chart pattern characterized by two major trendlines. The upper limit line connects the lower limit high price and the lower limit line connects the lower limit low price. This chart formation often correlates with a bearish structure where the upper trendline acts as resistance and the lower boundary acts as the price floor.
Source: @burak_kesmeci on X
According to Kesmeci, Ethereum price’s persistence in a descending channel and weak price momentum suggest a fall is possible. The crypto analyst highlighted that ETH could fall to the $1,822-$1,850 range as long as the overhead resistance at the $2,033 (Fibonacci 0.5) upper limit holds.
However, there is also a flipside scenario where Ethereum price could breakout towards $2,400 if it breaks through the $2.033 resistance. However, a decline towards the $1,850 area seems more likely, especially given the current demand situation.
Ethereum ETF records $241 million in outflows in the past week
This decrease in demand in the Ethereum market is evidenced by the increase in spot ETF outflows (more than $241 million in the past week). Last week’s record marks the third consecutive week of significant net outflows for spot ETH exchange traded funds.
Ethereum’s price behavior over the past three weeks appropriately reflects this gloomy market situation. The second-largest cryptocurrency has lost nearly 15% of its value in the past three weeks, according to data from CoinGecko.
As of this writing, the price of ETH is around $2,023 with no significant changes in the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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