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Ethereum remains one of the worst performing cryptocurrencies in terms of market cap, despite its incredible popularity. This bearish move has seen an increasing number of investors flip into the red as the price drops. If this continues, the price of ETH could fall below $2,000 again. But there is still a possibility of a trend reversal, as a bullish pattern has formed on the Ethereum price chart.
Ethereum’s falling wedge pattern appears
With the recent price drop, a falling wedge pattern has formed for the Ethereum cryptocurrency. Now, with the rebound from its lows, this pattern is close to its completion, which means that the next steps will begin soon.
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Crypto analyst CobraVanguard highlighted this point in an analysis on TradingView that highlighted the falling wedge pattern. This pattern, while it can be quite bullish for an asset, can also be very bearish for the price of Ethereum. The crypto analyst therefore outlines the two possible scenarios for the altcoin’s price.
The first of these scenarios is a breakout of the falling wedge pattern that formed on the 1-day time frame. If this breakout occurs, Ethereum price could then surge. In addition to this, the crypto analyst also highlighted a bullish divergence on the MACD for Ethereum price, which lends credence to a possible breakout of the falling wedge pattern.
However, on the other hand, if the price does not break out of this pattern, the price of the cryptocurrency is expected to fall. This is due to the increasing bearish pressure on the second-largest cryptocurrency by market cap, as large holders continue to sell over the past month. Furthermore, the analyst explains that the fifth wave could eventually occur, which could push the price even higher.
Where can ETH price go from here?
The bullish scenario following a breakout is particularly important for Ethereum price, as it could end the bearish trend that has been rocking the price. In the analysis, the crypto analyst points out that a breakout from here would push ETH price up to $3,000, which is an increase of more than 30% from where it is now.
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However, if Ethereum price were to fall, it could see a further decline below $2,000. The analyst’s chart places the altcoin’s price at $1,778. Such a development, coupled with ETH’s low volume so far, could trigger a further drop to $1,500.
Featured image created with Dall.E, chart by Tradingview.com
