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Ethereum continues to be one of the worst performers among the largest cryptocurrencies by market capitalization, despite its immense popularity. The bearish trend has resulted in a growing number of investors facing losses as the price declines. Should this downward trend persist, the ETH price might dip below $2,000 once more. Nevertheless, there’s still hope for a reversal as a bullish pattern has appeared on the Ethereum price chart.
Ethereum Falling Wedge Pattern Appears
With the recent downturn in price, a falling wedge pattern has emerged for Ethereum. Now, with a rebound from its lows, this pattern is nearing completion, setting the stage for the next phase.
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Crypto analyst CobraVanguard highlighted this pattern in an analysis on TradingView. While a falling wedge pattern can signal bullish prospects for an asset, it can also be bearish for Ethereum’s price. The analyst outlines two potential scenarios for the altcoin’s price trajectory.
The first scenario involves a breakout from the falling wedge pattern on the 1-Day timeframe. Should this breakout occur, Ethereum’s price could surge significantly. Additionally, the analyst noted a bullish divergence on the MACD for Ethereum, further supporting the possibility of a breakout from the falling wedge pattern.
Conversely, if the price fails to break out from this pattern, Ethereum’s price is likely to decline further. This expectation stems from the increasing bearish pressure on the second-largest cryptocurrency by market cap, as large holders have been selling off their assets over the past month. The analyst also mentions the potential for a fifth wave, which could push the price higher.
Where Can The ETH Price Go From Here?
The bullish scenario following a breakout is crucial for Ethereum’s price, as it could halt the prevailing bearish trend. According to the analyst, a breakout could propel ETH’s price to as high as $3,000, representing an increase of over 30% from current levels.
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However, if a breakdown occurs, Ethereum’s price could fall below $2,000 once more. The analyst’s chart suggests a potential dip to $1,778. Such a scenario, combined with the currently low trading volume for ETH, could lead to a further decline to $1,500.
In conclusion, Ethereum’s price is at a critical juncture. While a bullish breakout could lead to significant gains, a failure to break out from the falling wedge pattern could result in further losses. Investors should closely monitor the price movements and trading volumes to make informed decisions.
