The Ethereum network successfully merged to become proof of stake on its Ropsten testnet on June 8. However, the news did not have an impact on the ETH price.
Analysts have maintained a bearish outlook on Ether prices in the short-term because the Ropsten upgrade is now more of a “buy news, sell rumor” event. Let’s take another look.
ETH/USDT 1-day chart. Source: TradingView
Can Ether escape from the head-and shoulders pattern?
Pseudonymous Twitter analyst, “Cactus,” pointed out a bearish head and shoulders pattern and asked whether Ether price could follow the sharp downside that usually follows the completion.
ETH/USD 1-week chart. Source: Twitter
Cactus said,
“This is what we’re getting excited about?” It’s hard to remain bullish until S/R (support/resistance) flips 2K.
Below $1,800 are the areas to watch for support, according to the chart by crypto analyst “il Capoof Crypto,” who posted it on Twitter. He ominously stated, “Lower highs all of the time, and that support was touched a lot already.”
ETH/USD 1-day chart. Source: Twitter
According to the analyst,
“Clean break of $1700 and last leg down would confirm, main target = $1,000
Further downside is predicted by the descending triangle pattern.
Pseudonymous analyst “Crypto Tony” highlighted a separate, but bearish, descending triangle chart pattern. He wondered if it was “something too obvious to ignore”.
ETH/USD 1-day chart. Source: Twitter
The chart provided by Crypto Tony shows that the lower support area could cause Ether to fall below its current price.
Related: Ethereum double Doji’ pattern suggests a 50% ETH price rise by September
Price momentum turns negative
The pseudonymous cryptocurrency trader Cantering Clark offered a macro view of Ether’s weakness. He said that “If this time wasn’t slightly different, then I would look at the $ETH chart and think “Big ships turn slowly, but they don’t stop easy.”
ETH/USD 1-week chart. Source: Twitter
Clark Cantering said
This could signal the start of actual momentum down by using high-frequency measures. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/traders-target-1-400-ethereum-price-after-eth-drops-closer-to-a-critical-support-level
