Ethereum’s price performance was disappointing for most of May as the bears appeared to be in complete control. It doesn’t look like much will change for the “King of Altcoins” in the new month, which appears to be a simple continuation of the established downtrend. According to a popular analyst from social media platform
Is ETH price stuck in a descending channel?
Crypto analyst Burak Kesmeci took to the X platform to share his Ethereum price projection for the coming days. The market expert posited that the second-largest cryptocurrency could decline to between $1,822 and $1,850 if it fails to break the $2,033 resistance over the next few days.
This bearish outlook is based on the fact that sellers have held a dominant position in the near term and for much of the past month. This dominance is evident in the formation of a descending channel on the four-hour time frame of the Ethereum price chart.
A descending channel is a technical analysis chart pattern characterized by two main trendlines: the upper boundary connecting lower highs and the lower line connecting lower lows. This chart formation is often correlated with a bearish structure, with the upper trend line acting as resistance and the lower boundary as the price floor.
Source: @burak_kesmeci on X
According to Kesmeci, the persistence of Ethereum price in the descending channel and weak price momentum suggest that a downward movement is possible. The crypto analyst highlighted that ETH could fall to between $1,822 and $1,850, as long as the upper resistance at the upper boundary of $2,033 (Fibonacci 0.5) holds.
However, there is also a reverse scenario in which Ethereum price could reach $2,400 if the resistance at $2.033 is breached. However, a decline towards the $1,850 region seems more likely, especially given current demand conditions.
Ethereum ETFs Post $241 Million in Outflows Over the Past Week
This decline in demand in the Ethereum market is evident in the increase in outflows from spot ETFs, which exceeded $241 million over the past week. Last week’s record marked the third consecutive week with significant net outflows for ETH spot exchange-traded funds.
Ethereum’s price action over the past three weeks accurately reflects this pessimistic market situation. According to data from CoinGecko, the second largest cryptocurrency has lost almost 15% of its value over the past three weeks.
At the time of writing, the ETH price stands at around $2,023, with no significant change over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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