Ethereum’s price has fallen significantly in recent months, leaving it struggling alongside Bitcoin as investors rush to sell their coins. These sales were done in anticipation of lower price levels, and it appears that the investors who sold earlier were correct, as prices continue to fall further. Analysts continue to predict that the market will continue to decline, with stocks like Ethereum expected to experience a significant retrace before bottoming out.
Tech patterns suggest next direction for Ethereum
In an analysis shared on the TradingView website, cryptocurrency analyst Merica Trader outlined that Ethereum prices could soon crash again. So far, digital assets have seen a price consolidation that looks like a large symmetrical triangle pattern. This comes as the price continues to fall below $2,000.
Primarily, most of this movement has come as Ethereum price is struggling around the $1,977 level, with analysts explaining that the lack of upward momentum at this level could mean that the bears are officially in full control of the altcoin price.
Considering the technical movement, cryptocurrency analysts explain that Ethereum price is currently approaching the top of a triangle pattern. This occurred after price was firmly wedged between two converging major trend lines. At this point, Ethereum price will need to move significantly to confirm its next direction.
Nevertheless, the expected Ethereum movement at this level is expected to be bearish. Essentially, cryptocurrency analysts are telling traders to wait until the breakdown continues and the price drops below the triangle’s lower support line. For context, this support line is located at $1,912, a level that bears can beat.
However, once this level is triggered, the next move is a further decline in Ethereum price. The expectation remains that a break of the lower trend line will lead to a retest of the lower trend line as resistance. This trendline is located at $1,781 and is the final target of the triangle break. The analyst concluded: “Keep an eye on the lower bound. If the support breaks down, a quick move towards the $1,780 level is likely. Be patient and wait for confirmation.”
Featured image from Dall.E, chart from TradingView.com
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