Ethereum, despite its popularity, has been underperforming when compared to other top cryptocurrencies by market cap. This downward trend has left many investors in a precarious position, with the price of ETH potentially falling below $2,000 once again. The recent decline in price has led to the formation of a falling wedge pattern for Ethereum, indicating a potential reversal in the near future.
Crypto analyst CobraVanguard has highlighted the falling wedge pattern in an analysis on TradingView. This pattern, while typically bullish, can also have bearish implications for the Ethereum price. It is important to note the two possible scenarios outlined by the analyst regarding the altcoin’s price movement.
The first scenario involves a breakout from the falling wedge pattern on the 1-Day timeframe. If this breakout occurs, Ethereum’s price could experience a significant increase. The analyst also points out a bullish divergence on the MACD indicator, further supporting the possibility of a breakout. However, if the price fails to break out of the pattern, a further decline is expected due to ongoing bearish pressure and sell-offs by large holders.
In a bullish scenario following a breakout, the analyst predicts that the ETH price could reach as high as $3,000, representing a more than 30% increase from the current levels. On the other hand, if there is a breakdown in the price, Ethereum could see a decline below $2,000, potentially dropping as low as $1,778. This outcome, combined with low trading volume, could lead to a further decline to $1,500.
The future of Ethereum remains uncertain, with both bullish and bearish scenarios on the table. Investors and traders will need to closely monitor the price action and be prepared for potential volatility in the coming days. A breakout from the falling wedge pattern could signal a positive trend reversal, while a failure to do so may result in further downside for the Ethereum price. It is crucial to consider all factors at play and make well-informed decisions when trading or investing in Ethereum.
