Ethereum’s price has been experiencing a prolonged period of stagnation, struggling to gain upward momentum for several months. Recently, its value dipped to approximately $2,500, raising concerns among traders and analysts. Notably, veteran crypto trader Peter Brandt has voiced caution, warning of an even steeper decline. He predicts a potential drop to $1,550 due to the persistent lack of strong buying interest. This forecast is based on Ethereum’s 4-hour chart, which suggests possible further losses. However, there remains a glimmer of hope for ETH price recovery.
Ethereum Heading for a Big Drop
Renowned trader Peter Brandt has expressed apprehension regarding Ethereum (ETH), stating that there is currently no buy signal. He highlighted the formation of a bearish rising wedge pattern on the 4-hour chart, which often precedes significant price declines. Brandt believes the chart still conveys a bearish sentiment, with a downside target of $1,551 that has yet to be reached. However, he cautions that predicting the exact outcome of these patterns is challenging, as market movements often defy expectations.
Presently, Ethereum is trading around $2,505, reflecting a 5.3% decrease in the last 24 hours. Despite this decline, the 24-hour trading volume has increased by 3%, indicating heightened interest among traders. However, open interest has seen a notable drop of 18.5% in the past four hours.
20% Possible Drop Ahead?
Simultaneously, prominent crypto analyst Michael van de Poppe has shared his insights on Ethereum (ETH) and its potential trajectory. He described the current ETH chart as complex and challenging. If Ethereum continues its downward momentum, a further decrease of 10% to 20% could be on the horizon.
Despite the bearish outlook, van de Poppe remains cautiously optimistic about a potential reversal. He underscores the significance of upcoming economic data, particularly today’s release of unemployment figures. These data points could play a crucial role in influencing Ethereum’s future direction.
- Also Read:
- Why Is the Crypto Market Down Today? Top Reasons Behind the Market Crash
Ethereum Price Analysis
Despite the prevailing bearish sentiment, Ethereum’s technical analysis offers a glimmer of hope. The price is following an ascending trendline that could trigger a retest around $2,550 to $2,600. Additionally, the daily chart reveals an ascending triangle pattern, often indicative of a bullish outlook for Ethereum’s price prediction.
The next critical target is $2,800, with Ethereum aiming to surpass the 100-day and 200-day Exponential Moving Averages. Achieving this would bolster its bullish momentum. The Relative Strength Index (RSI) currently sits above 50, suggesting buyer control without reaching overbought conditions. Meanwhile, narrowing Bollinger Bands indicate reduced volatility. However, if Ethereum closes above $2,800, volatility could swiftly increase, potentially propelling ETH to reach the $3,000 mark.
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