Despite its popularity, Ethereum continues to underperform among the top largest cryptocurrencies by market cap. Recently, there has been a bearish movement causing the price to drop, putting many investors in the red. The ongoing trend suggests that the ETH price may fall below $2,000 once again.
Amidst the downward trend, there is still a glimmer of hope for Ethereum. A bullish pattern has emerged on the Ethereum price chart in the form of a falling wedge. This pattern indicates a potential reversal in the price movement. As the price rebounds from its lows, the completion of this pattern signals imminent next steps.
A crypto analyst named CobraVanguard has identified the falling wedge pattern on the Ethereum cryptocurrency. While this pattern can be bullish, it also poses a bearish threat to the Ethereum price. The analyst has outlined two possible scenarios for the altcoin’s price based on the pattern.
One scenario presented by the analyst is a breakout from the falling wedge pattern observed on the 1-Day timeframe. If this breakout occurs, the Ethereum price could experience a significant surge. Additionally, a bullish divergence on the MACD further supports the possibility of a breakout and subsequent price increase.
On the other hand, if the price fails to break out from the pattern, the cryptocurrency is likely to face a decline. The continuous sell-offs by large holders have contributed to the mounting bearish pressure on Ethereum. There is also a possibility of the fifth wave playing out, potentially pushing the price even lower.
A successful breakout from the falling wedge pattern holds critical importance for the Ethereum price. It could mitigate the prevailing bearish sentiment and propel the price towards $3,000, marking a substantial increase of over 30%. However, a breakdown in price could lead to another decline below $2,000, with predictions as low as $1,778. This, combined with the lackluster volume for ETH, might trigger a further breakdown to $1,500.
The Ethereum market currently stands at a crucial juncture, with potential for both a bullish breakout and further bearish decline. Investors and traders closely monitor the price movement and await the outcome of the falling wedge pattern. The next market movements could prove decisive in determining the future trajectory of the Ethereum price.
