As a seasoned analyst with over a decade of experience in the financial markets, I have seen my fair share of market cycles and trends. Currently, the Ethereum price action has piqued my interest due to the formation of a falling wedge pattern on its 1-Day chart. This pattern can be bullish or bearish, and it’s essential to consider both possibilities.
As a researcher observing the cryptocurrency market, I find it intriguing that Ethereum, despite its immense popularity, remains one of the underperformers among the leading digital currencies in terms of market capitalization. The recent bearish trend has been pushing more and more investors into losses as the price plummets. If this downward trajectory persists, we might see the ETH price dipping below the $2,000 mark once more. However, it’s essential to note that a potential reversal is not entirely off the table, given the emergence of a bullish pattern on the Ethereum price chart.
Ethereum Falling Wedge Pattern Appears
Due to a recent drop in Ethereum’s value, a falling wedge chart formation has emerged. As Ethereum has started recovering from its lowest points, this pattern is almost complete, implying that the subsequent actions will start shortly.
Crypto analyst CobraVanguard pointed this out in an analysis on TradingView which highlighted the falling wedge pattern. This pattern, while it can be quite bullish for an asset, it can also be very bearish for the Ethereum price. So, the crypto analyst outlines the two possible scenarios for the altcoin’s price.
The first of these scenarios is a breakout from the falling wedge pattern that has formed on the 1-Day timeframe. If this breakout happens, then the Ethereum price could rocket from here. In addition to this, the crypto analyst has also outlined a bullish divergence on the MACD for the Ethereum price, which lends credence to a possible breakout from the falling wedge pattern.
On one hand, if the cryptocurrency’s price doesn’t surge beyond its current pattern, it might decrease instead. This is because there’s increasing bearish sentiment surrounding the second-largest crypto by market cap, with significant sell-offs by major investors over the past month. However, an analyst suggests that the fifth wave could materialize, potentially causing the price to rise even further.
Where Can The ETH Price Go From Here?
In this analysis, the Ethereum price could significantly rise if it breaks out from its current level. Such a move might mark the end of the recent downtrend and potentially push the ETH price up to around $3,000 – an increase of over 30%.
If the Ethereum price experiences a drop, it might fall below the $2,000 mark again, potentially reaching as low as $1,778 according to analyst predictions. This decline, combined with the current low trading volume of ETH, could lead to a further decrease, possibly taking the price down to $1,500.
Read More
Sorry. No data so far.
2024-09-09 17:46