Ethereum, one of the largest cryptocurrencies by market cap, seems to be struggling as it remains one of the worst performers in the market. Investors are feeling the pressure as the price of ETH continues to drop, pushing many into the red. There is a looming possibility that the price of Ethereum could plummet below $2,000 once again.
Despite the bearish movement, there is hope for a potential reversal as a bullish pattern emerges on the Ethereum price chart. A falling wedge pattern has been identified for the Ethereum cryptocurrency, indicating a possible turnaround. The recent rebound from its lows suggests that this pattern is nearing its completion, signaling that significant changes are on the horizon.
Crypto analyst CobraVanguard has highlighted the falling wedge pattern in their analysis on TradingView, shedding light on the potential outcomes for the altcoin’s price. The first scenario is a breakout from the falling wedge pattern on the 1-Day timeframe, which could result in a substantial surge in the Ethereum price. Additionally, a bullish divergence on the MACD further supports the likelihood of a breakout from the pattern.
However, if the price fails to break out from the pattern, Ethereum could be facing a downward trend. Mounting bearish pressure from large holders engaging in sell-offs over the past month could drive the price of the cryptocurrency lower. The analyst also mentions the possibility of the fifth wave playing out, which could lead to a further increase in price.
The bullish scenario following a breakout from the falling wedge pattern is crucial for Ethereum as it could help alleviate the current bearish sentiment. A successful breakout could propel the ETH price to as high as $3,000, representing a significant increase of more than 30%. On the other hand, a breakdown in price could see Ethereum dipping below $2,000, with the analyst’s chart projecting a low of $1,778. The lackluster volume for ETH so far could exacerbate this situation, potentially triggering a further decline to $1,500.
Overall, the future of Ethereum’s price remains uncertain, with potential for both bullish and bearish movements. Investors and traders will need to closely monitor the market developments and be prepared for any possible outcomes in the coming days.