Ethereum’s native token Ether, (ETH), could see a 35% price correction during Q2, as it moves closer to breaking the “ascending triangular” pattern.
Price breakdown for ETH ahead
Ether traded at $2,825, with profits and losses fluctuating on May 2, while trading between profits and loss. This shows traders’ indecisiveness about their next bias.
The Ethereum token was surprisingly shaken in proximity to a rising trendline, which is an ascending triangle pattern that’s conjugated with horizontal resistance.
As you can see, ascending triangles are often continuation patterns. However, Ether’s market price trended lower before it formed its ascending triangle. This increases its chance of a collapse in the coming weeks.
Another sign that Ether is a bear is the fake out move it made more than a year ago.
It was notable that Ether broke through its ascending triangle on March 28, only to then return to its range one week later. This is a fake breakout. The triangle’s resistance was flipped, and then there was a period where sellers were consistent, indicating that the bearish momentum is strengthening, and it is now close to a breakdown.
Weekly price chart for ETH/USD featuring an ‘ascending triangular’ layout. Source: TradingView
Breaking below the Triangle’s lower Trendline will place the downside target at a length equal the Triangle’s maximum height. This is usually $1,820 (-35%), or around $2,160 (30%) depending on the breakout point.
Institutional ETH Outflows
According to CoinShares’ latest report, in 2022, accredited investors began withdrawing funds from Ethereum-based investment products.
Related: Solana experiences 7th outage 2022 when bots invade the network
Detail: Up to $169 million had already been transferred from Ethereum funds up until April 22. However, capital inflows were witnessed by Ethereum’s top-tier competitors, Solana (SOL), Avalanche, (AVAX), and its main rival, Bitcoin (BTC).
As of April 22, institutional flows by assets Source: CoinShares
Seeking Alpha’s pseudonymous analyst, The Digital Trend, argues that investors are repositioning capital to gain exposure funds associated with Ethereum’s rivals, namely Solana (LUNA), Terra (LUNA), and Algorand(ALGO).
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