In the course of the last few months, the Ethereum price has seen a lot of decline, struggling alongside Bitcoin as investors rush to offload their coins. These sell-offs have come in anticipation of lower price levels, and with the price continuing to dip further, it seems the investors who sold earlier were right. Even now, analysts continue to predict that the market decline will continue, with the likes of Ethereum expected to suffer major retracement before a bottom is established.
Technical Patterns Show Where Ethereum Is Headed Next
In an analysis shared on the TradingView website, crypto analyst Melikatrader outlined that the Ethereum price could be seeing another major crash soon. So far, the digital asset has seen its price consolidation in what appears to be a large symmetrical triangle pattern. This comes while the price continues to chop below $2,000.
Mainly, most of the action has happened as the Ethereum price has struggled around the $1,977 level, which the analyst explains that the lack of upward momentum at this level could mean that bears have now officially taken full control of the altcoin’s price.
Taking the technical action into account, the crypto analyst explains that the Ethereum price is now nearing the apex of a triangle pattern. This comes after the price had been tightly packed between two major converging trend lines. At this point, the Ethereum price would need to make a major move to confirm the next direction.
Nevertheless, the expected move for Ethereum at this level is expected to be bearish. Essentially, the crypto analyst tells traders to wait for a breakdown to follow and for the price to fall below the lower support line of the triangle. For context, this support line lies at $1,912, making it the level to beat for bears.
Once this level is triggered, though, then the next move is for the Ethereum price to fall further. Expectation remains that a break of the lower trendline would lead to a retest of the lower trendline that marks resistance. This trendline is at $1,781, making it the final target of the triangle breakdown. “Keep a close eye on the lower boundary. If that support snaps, we likely see a swift move toward the $1,780 level. Stay patient and wait for the confirmation,” the analyst said in closing.
Featured image from Dall.E, chart from TradingView.com
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