Over the past few months, the price of Ethereum has seen a lot of declines and has struggled along with Bitcoin as investors rush to offload their coins. This selling was done in anticipation of lower price levels, and it appears that investors were right to sell earlier as prices continued to fall. Even now, analysts continue to predict that the market decline will continue, with cryptocurrencies like Ethereum expected to experience a major retracement before a bottom is formed.
Technical Patterns Show Where Ethereum Is Heading Next
In an analysis shared on the TradingView website, cryptocurrency analyst Melikatrader explained that the price of Ethereum could soon experience another major crash. So far, the digital asset has shown price consolidation in what appears to be a large symmetrical triangle pattern. This happens while the price continues to drop below $2,000.
Most of the action occurred primarily as the Ethereum price struggled around the $1,977 level. The analyst explains that the lack of upward momentum at this level could mean that the bears are now officially in full control of altcoin prices.
Taking technical measures into account, the cryptocurrency analyst explains that the Ethereum price is now approaching the peak of a triangle pattern. This happens after the price is tightly packed between two major converging trend lines. At this point, Ethereum price needs to make a big move to confirm the next direction.
Nonetheless, Ethereum’s expected movement from these levels is expected to be bearish. Essentially, cryptocurrency analysts tell traders to wait for a collapse to occur and the price to fall below the lower support line of the triangle. For context, this support level at $1,912 is a level that could beat the bears.
However, if this level is triggered, the next action will be for the Ethereum price to fall further. If the lower trend line is broken, the expectation remains that the lower trend line marking resistance will be retested. This trend line is located at $1,781 and is the final target for a triangle collapse. “Watch the lower limit carefully. A break of support is likely to lead to a quick move towards the $1,780 level. Be patient and wait for confirmation,” the analyst said in closing.
Featured image by Dall.E, chart by TradingView.com
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