Over the past few months, the price of Ethereum has seen a sharp decline, struggling alongside Bitcoin as investors rush to cash out their coins. This sell-off came in anticipation of lower price levels, and as the price continues to fall, it appears that the investors who sold earlier were right. Even now, analysts continue to predict that the market decline will continue, with the popularity of Ethereum expected to suffer a rebound before establishing a bottom.
Technical Patterns Show Where Ethereum Is Heading Next
In an analysis shared on the TradingView website, crypto analyst Melikatrader revealed that the price of Ethereum may see another big risk soon. So far, the digital asset has seen its price consolidate in what appears to be a large equilateral triangle pattern. This comes while the price continues to drop below $2,000.
Mainly, most of the action happened as the price of Ethereum has struggled around the level of $1,977, where the analyst explained that the lack of upward momentum at this level may mean that the bears have now officially taken full control of the price of the altcoin.
Taking technical action into account, the crypto analyst explains that the price of Ethereum is now approaching the top of the triangle pattern. This comes after the price was tightly packed between two major trend lines. At this point, Ethereum price will need to make a big move to confirm the next direction.
However, the expected movement of Ethereum at this level is expected to be bearish. Basically, the crypto analyst is telling traders to wait for a breakdown to follow and the price to fall below the lower triangle support line. For context, this support line is at $1,912, making it a bearish strike level.
Once this rate is triggered, however, the next step is for the price of Ethereum to drop further. It is still expected that a break of the lower line will lead to a retest of the lower line marking resistance. This line is at $1,781, making it the final target of the triangle breakout. “Keep a close eye on the lower boundary. If that support breaks, we are likely to see a quick move towards the $1,780 level. Be patient and wait for confirmation,” the analyst concluded.
Featured image from Dall.E, chart from TradingView.com
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