Falling wedge pattern points to eventual Ethereum price reversal, but traders expect more pain first
On May 26, the cryptocurrency market saw another round of selling as Bitcoin (BTC), and Ether (ETH), prices dropped to $28,000 each. The ETH/BTC price pair fell below what traders consider an important ascending trendline. This could lead to Ether price correction to new lows, traders believe.
ETH/USDT 1-day chart. Source: TradingView
Here are the views of several market analysts on the Ethereum price drop and what this could mean in the near future.
A sharp price move will eventually be the result of price consolidation
Independent market analyst Michael van de Poppe provided a brief overview of the levels of support or resistance that should be monitored. He posted the following chart, which shows Ether trading at its lowest point.
ETH/USD 1-hour chart. Source: Twitter
Van de Poppe said:
“The real question is whether we can bounce back from here and break through the $1,940 mark. If it happens, I assume we’ll keep $2,050. If that happens, the markets will be looking at it.
ETH could fall to new lows in a bullish falling wedge
Crypto Tony, a Twitter analyst, said that Ether price “still looking for that leg lower to load up on.”
ETH/USDT 4-hour chart. Source: Twitter
This may seem negative but it is actually a positive sign according to Jon Morgan, a Cointelegraph contributor. Jon noted that the chart shows a falling wedge, which is a bullish standard candlestick/bar charts pattern, and that this pattern is indicative of a market moving to extremes that are likely to reverse.
Morgan said:
“Highly probable that there will be a violent correction or a new uptrend.”
Related: Ethereum price drops below $1.8K support, as bears prepare to expire Friday’s $1B options
Bitcoin dominance rises
ETH/BTC 1-day chart. Source: Twitter
Caleb Franzen, an economist, stated that the ETH/BTC pair lost a significant support. This is noteworthy because:
“This means at least one of the following statements will be true: $ETH will weaken relative to $BTC; $BTC is expected to outperform $ETH; Alts may underperform $BTC.”
CrediBULL Crypto, a Twitter user, noted that the price has “began to take some local lows”.
ETH/BTC 3-day chart. Source: Twitter
According to the analyst:
“Any relief we get here is temporary, until we reach the bottom of this range. We may actually head lower than the one shown here, before making a recovery. However, I will evaluate once we reach my target.
The price of Ether and other altcoins could trend lower as a result of continued weakness in the ETH/BTC pairing. However, BTC could remain at its current price or rise as traders exit underperforming positions to trade for Bitcoin.
The total cryptocurrency market is now worth $1.235 trillion, and Bitcoin’s dominance rate at 46.2%.
com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/falling-wedge-pattern-points-to-eventual-ethereum-price-reversal-but-traders-expect-more-pain-first
