Bearish head and shoulders pattern forces Ethereum traders to re-adjust their price targets

The crypto markets are volatile, and some traders who have been around for a while believe that the bearish trend in crypto markets will continue so long as stock market prices chase new lows.

Investors would agree that crypto is in a bearish market. The current price action for Bitcoin (BTC), and Ethereum (ETH), suggests that consolidation and capitulation are possible.

TradingView and Cointelegraph Markets Pro data show that Ether is still struggling to regain the $2,000 support level. This zone has been a significant support and resistance area since February 2021.

ETH/USDT 1-day chart. Source: TradingView

Ether requires a monthly close of at least $2,250

Market analyst Rekt Capital posted the following chart, which indicates that the key support level Ether must clear by the monthly closing to regain a bullish outlook.

ETH/USD 3-day chart. Source: Twitter

Rekt Capital said,

ETH is moving closer to the key $2,250 level.” It is not clear if that monthly level will become new resistance.

Target $1,650 for traders

Crypto trader and pseudonymous user Crypto Tony posted the following chart. He “expects another drop into the OB”, where they are looking for orders to be filled.

ETH/USDT 3-day chart. Source: Twitter

Crypto Tony said.

“This move is necessary to create liquidity that will propel us into the corrective waves. We will see what happens from there.”

Related: “Huge milestone” for Ethereum: Ropsten testnet merger set for June 8

The head and shoulders structure of Ether is complete

The completion of the head-and-shoulders pattern on the weekly chart was a bearish sign. This point is highlighted in the chart below by CryptoCharts.

ETH/USD 1-week chart. Source: Twitter

CryptoCharts said,

“With the recent sideways cryptocurrency market, it is easy to spot it as a bounce or breakout on the support highlighted. In the short-term, I will be watching closely for any breakout or reversal breakout of the current support. This will help the price move towards $1,300 as the next support. Any bounce back will continue to rise towards $2,450.”com. You should do your research before making any investment or trading decision.

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