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.
“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%.
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