Despite its popularity, Ethereum remains one of the worst performers among the top cryptocurrencies by market cap. The recent bearish movement in the market has caused the price of ETH to drop, putting many investors in a precarious position. If this trend continues, there is a real possibility that the price of Ethereum could fall below $2,000 once again.
Amidst the gloom and doom, there is a glimmer of hope for Ethereum. A bullish pattern has emerged on the Ethereum price chart in the form of a falling wedge pattern. This pattern indicates a possible reversal in the price movement of ETH. The recent rebound from its lows suggests that this pattern is nearing completion, signaling that significant changes may be on the horizon.
Crypto analyst CobraVanguard has shed light on this potential turning point in Ethereum’s price trajectory. In an analysis on TradingView, CobraVanguard highlighted the falling wedge pattern and its implications for the cryptocurrency. While this pattern can be bullish for an asset, it can also spell trouble for the Ethereum price.
Possible Scenarios
The analyst has outlined two possible scenarios for the price of Ethereum. The first scenario involves a breakout from the falling wedge pattern on the 1-Day timeframe, which could catapult the price of ETH to new heights. The presence of a bullish divergence on the MACD further supports the case for a breakout from the pattern.
On the flip side, if the price fails to break out from the pattern, Ethereum could be in for further losses. The mounting bearish pressure on the second-largest cryptocurrency by market cap, fueled by significant sell-offs from large holders, could push the price lower. The possibility of the fifth wave playing out adds to the bearish sentiment surrounding Ethereum.
The Importance of a Breakout
A breakout from the falling wedge pattern is crucial for Ethereum as it could signal the end of the bearish phase that has been plaguing the price. The analyst predicts that a successful breakout could send the price of ETH soaring to $3,000, representing a substantial increase from its current levels. Conversely, a breakdown in the price could see Ethereum plummeting below $2,000 once again, with the analyst’s chart projecting a low of $1,778.
Final Thoughts
The current state of Ethereum is fraught with uncertainty, with conflicting signals pointing towards both a potential rally and a further decline in price. The coming days will be crucial in determining the direction in which Ethereum’s price will move. Investors are advised to exercise caution and closely monitor the market dynamics to make informed decisions regarding their Ethereum holdings.
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