Over the past few months, the price of Ethereum has seen a sharp decline, struggling alongside Bitcoin as investors rush to dump their coins. These massive sell-offs occurred in anticipation of a price decline, and as prices continue to fall, it appears that the investors who sold early were right. Even today, analysts continue to predict that the market decline will continue, and companies like Ethereum are expected to undergo a major retracement before a bottom is established.
Technical models show where Ethereum is going next
In an analysis shared on the TradingView website, crypto analyst Melikatrader highlighted that the Ethereum price could soon experience another major crash. So far, the digital asset has seen its price consolidate in what appears to be a large symmetrical triangle. This comes as the price continues to decline below $2,000.
Primarily, most of the action occurred when Ethereum price struggled around the $1,977 level. The analyst explains that the lack of bullish momentum at this level could mean that the bears have now officially taken full control of the altcoin’s price.
Considering the technical action, the crypto analyst explains that the price of Ethereum is now approaching the apex of a triangle. This comes after price was squeezed tightly between two major converging trendlines. At this point, Ethereum price will need to make a major move to confirm the next direction.
However, the expected evolution of Ethereum at this level should be bearish. Essentially, the crypto analyst tells traders to wait for a breakdown to follow and the price to fall below the lower support line of the triangle. As a reminder, this support line sits at $1,912, making it the level for bears to beat.
However, once this level is triggered, the next step will be for the Ethereum price to fall further. A breakout of the lower trendline is always expected to lead to a retest of the lower trendline which marks resistance. This trendline sits at $1,781, making it the final target of the triangle breakdown. “Keep a close eye on the lower boundary. If this support breaks, we are likely to see a quick move towards the $1,780 level. Stay patient and wait for confirmation,” the analyst said in conclusion.
Featured image of Dall.E, chart by TradingView.com
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
