Ethereum, despite being one of the most popular cryptocurrencies, has been underperforming compared to other top cryptocurrencies by market cap. Investors have seen their positions turn into losses as the price of Ethereum continues to drop. As the price hovers dangerously close to falling below $2,000, there is a potential for a further downward movement.
Recently, a bullish pattern has emerged on the Ethereum price chart in the form of a falling wedge pattern. This pattern indicates a potential reversal in the price trend. The completion of this pattern signals that the next price movement will commence shortly. Crypto analyst CobraVanguard highlighted this pattern in a recent analysis on TradingView.
The analyst outlines two possible scenarios for Ethereum’s price based on the falling wedge pattern. The first scenario involves a breakout from the pattern on the 1-Day timeframe, which could result in a significant price increase for Ethereum. Additionally, the analyst also identified a bullish divergence on the MACD, further supporting the potential breakout.
On the other hand, if Ethereum fails to break out of the falling wedge pattern, the price is expected to continue its downward trend. The analyst attributes this bearish pressure to large holders selling off their investments over the past month. There is also a possibility that the fifth wave could play out, leading to even lower prices for Ethereum.
A breakout from the falling wedge pattern could potentially propel the price of Ethereum to as high as $3,000, representing a significant increase of over 30% from the current levels. However, a breakdown in the price could see Ethereum plummet below $2,000, with the analyst’s chart suggesting a low of $1,778. The lack of significant volume for Ethereum adds to the uncertainty surrounding its price movement.
The future of Ethereum’s price remains uncertain, with both bullish and bearish scenarios on the table. Traders and investors should closely monitor the price action and be prepared for potential volatility in the coming days.
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