Over the past few months, the price of Ethereum has seen a lot of decline, struggling alongside Bitcoin as investors rushed to unload their coins. This selling came in anticipation of lower price levels, and as the price continues to fall further, it appears that investors who sold earlier were right. Even now, analysts continue to expect the market to continue to decline, with the likes of Ethereum expected to suffer significant bounces before a bottom is set.
Technical patterns show the next trend for Ethereum
In an analysis shared on TradingView, cryptocurrency analyst Melikatrader explained that the price of Ethereum could see another major collapse soon. So far, the digital assets have seen their prices consolidate in what appears to be a large symmetrical triangle pattern. This comes as the price continues to fall below $2,000.
Essentially, most of the movement occurred as the Ethereum price was struggling around the $1,977 level, which the analyst explains that the lack of upward momentum at this level could mean that the bears have now officially taken full control of the altcoin’s price.
Taking the technical action into account, the cryptocurrency analyst explains that Ethereum price is now approaching the top of the triangle pattern. This comes after the price was tightly sandwiched between two converging major trend lines. At this point, Ethereum price will need to make a big move to confirm the next trend.
However, the expected movement for Ethereum at this level is expected to be bearish. Essentially, a cryptocurrency analyst tells traders to wait until a breakout occurs and the price drops below the lower support line of the triangle. For context, this support line is at $1,912, making it the level to beat for bears.
Once this level is activated, the next step is for the Ethereum price to fall further. The expectation remains that breaking the lower trend line will lead to a retest of the lower trend line, which represents resistance. This trend line is at $1,781, making it the ultimate target for a triangle breakout. “Watch the bottom line closely. If this support breaks, we will likely see a quick move towards the $1,780 level. Be patient and wait for confirmation,” the analyst said in conclusion.
Featured image from Dall.E, chart from TradingView.com
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