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bitcoin-outperformed-ethereum-by-44-since-the-merge/” rel=”nofollow”>ethereum remains one of the worst performing cryptocurrencies One of the largest cryptocurrencies by market cap despite being incredibly popular. This bearish move has seen an increasing number of investors turn into the red as the price drops. If this continues, the price of eth could fall back below $2000. But there is still a chance of a reversal as a bullish pattern has formed on the ethereum price chart.
A descending wedge pattern appears on ethereum
With the recent price drop, a falling wedge pattern has formed for the ethereum cryptocurrency. Now, with the bounce from its lows, this pattern has come close to completion, which means that the next steps will begin soon.
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Cryptocurrency analyst CobraVanguard pointed this out in a eth-s-Situation-What-Shall-we-Expect/”>analysis on TradingView, which highlighted the falling wedge pattern. This pattern, while it can be quite bullish for an asset, can also be very bearish for the ethereum price. So, the cryptocurrency analyst outlines the two possible scenarios for the altcoin’s price.
The first of these scenarios is a breakout of the falling wedge pattern that has formed on the 1-day timeframe. If this breakout occurs, the ethereum price could skyrocket from here. In addition to this, the cryptocurrency analyst has also outlined a bullish divergence in the MACD for the ethereum price, which lends credence to a potential breakout of the falling wedge pattern.
However, on the other hand, if the price fails to break this pattern, the cryptocurrency price is expected to fall. This is due to the increasing bearish pressure on the second-largest cryptocurrency by market capitalization. ethereum-slips-to-2350-whales-exchange-751-million/” rel=”nofollow”>Large holders continue selling over the past month. Furthermore, the analyst explains that the fifth wave could end up developing, something that could push the price even higher.
Where can eth price go from here?
The bullish scenario following a breakout is especially important for the ethereum price as it could put an end to the pessimism that has rocked the price. In the analysis, the crypto analyst notes that a breakout from here would see the eth price surge towards $3,000, which is an increase of over 30% from here.
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However, if a price drop occurs, the price of ethereum could fall back below $2,000. The analyst's chart puts the price of the altcoin at $1,778. Such a development, coupled with the bitcoin-network-activity-has-stalled-while-it-has-fallen-on-ethereum-citi-report/” rel=”nofollow”>Low volume for eth At this point, it could trigger a further drop to $1,500.
Featured image created with Dall.E, chart from Tradingview.com
