Could This Week’s 15% Drop In Ethereum Signal A Retreat To The $1,000 Support?
Current situation
According to Coingecko (1), the second-largest cryptocurrency by market value is trading at $1,324 and has a 24-hour trading volume of over $5 billion. Ethereum has had a good week, increasing its price by 3.7% and spending the last seven days in the cryptocurrency market’s positive territory.
Since Ethereum is now in an inverted pennant formation, a continuation of the altcoin’s bearish trend is very likely. Ethereum’s potential new support level might be $1,130. However, analysts say that the widely acknowledged king of all cryptocurrencies is heading for a large market correction and bearish trend; therefore, investors in the asset should think about being vigilant. This outcome ran counter to positive predictions for the cryptocurrency after its successful network upgrade last month.
Ethereum’s Bearish Price Pattern
The Ethereum price has been oscillating for the last few days, and the cryptocurrency is on the verge of entering an increased downward momentum. A triangular formation develops due to this pattern, and the price peaks before breaking the bottom support trendline and returning to its earlier decline. Such an event would require Ethereum to breach the $1,250 support level to $1,130.
If it occurs, the altcoin’s price may plummet by as much as 14.3%. Ethereum may break over the overhead trendline of support in the opposite direction, halting the impending negative run of Bitcoin’s adversary (2). As cryptocurrency tracking service Coincodex (3) found that now is not a good time to buy in the altcoin, the bad news for Ethereum keeps coming.
Future predictions?
The digital currency is anticipated to trade at $1,237.79 on October 16 after losing 7.12% of its value. The cryptocurrency’s technical indications are also unfavorable, as its present attitude is bearish, and its volatility is still high. Ethereum scored a 22 on the Worry and Greed Index, indicating great fear. Additionally, the cryptocurrency only had 12 green days, or 40%, out of 30 days. The cryptocurrency king, however, looks to have a better year ahead of it as it is predicted to conclude the year with a trading price of $2,156.26, a substantial increase over its current price. Accordingly, experts advise waiting until 2023 to purchase this asset.
