Ethereum, one of the top cryptocurrencies by market capitalization, has continued to underperform despite its popularity. The recent bearish trend has resulted in a growing number of investors experiencing losses as Ethereum’s price declines. If this downward movement persists, ETH could once again fall below the $2,000 mark. However, there is still a glimmer of hope for a reversal, as a bullish pattern has begun to emerge on Ethereum’s price chart.
A falling wedge pattern has formed amidst the recent price decline of Ethereum. This technical pattern is nearing completion as Ethereum rebounds from its recent lows, signaling an imminent pivotal moment for the cryptocurrency.
Crypto analyst CobraVanguard has discussed this pattern in a recent analysis on TradingView, emphasizing the two possible outcomes for Ethereum’s price. The falling wedge pattern, while generally considered bullish, could also result in a bearish scenario, making the upcoming movements crucial for Ethereum.
The first scenario sees a breakout from the falling wedge pattern on the 1-Day timeframe. Should this breakout occur, Ethereum’s price could see a significant upward trajectory. Furthermore, the analyst has identified a bullish divergence on the MACD indicator for Ethereum, which supports the possibility of a breakout from the wedge pattern.
Conversely, if Ethereum fails to break out from the current pattern, its price could continue to decline. This potential drop is attributed to the increasing bearish pressure as large holders have been selling off their assets in the past month. The analyst also mentions the possibility of a fifth wave playing out, which could result in a price surge.
The bullish scenario is critical for Ethereum, as a breakout could alleviate the ongoing bearish trend. According to the analysis, such a breakout could propel Ethereum’s price up to $3,000, marking an increase of over 30% from current levels.
However, failure to break out could see Ethereum’s price falling again, possibly below $2,000. The analyst’s chart indicates that in such a scenario, the altcoin’s price could drop as low as $1,778. This potential decline, coupled with the currently poor trading volume for Ethereum, could trigger an even deeper plunge to $1,500.
Investors and market watchers are keeping a close eye on Ethereum’s price movements, waiting to see which scenario will play out. The next steps are crucial in determining the future trajectory of one of the world’s most prominent cryptocurrencies.
