Ethereum (ETH) formed an ascending triangle pattern but broke downward, indicating a potential 45% crash to $998.
Key Takeaways:
- Ethereum’s multi-month ascending triangle pattern breaks to the downside.
- ETH currently tests a vital resistance level at $1,639, signaling potential trouble.
- Theoretical analysis suggests a looming 45% crash after the recent bearish breakout.
- Ethereum’s price trajectory remains uncertain, with both bearish and bullish signals in play.
Ethereum (ETH) has been a topic of intense speculation as it navigates through a challenging phase in the crypto market. The digital asset recently shattered a multi-month ascending triangle pattern, heralding potential trouble for ETH enthusiasts. At present, Ethereum finds itself at a crossroads as it retests a pivotal resistance level at $1,639, a price point that has held significant importance over the past year.
Ethereum price at crossroads
The bearish sentiment surrounding Ethereum has been accentuated by a theoretical forecasting method, which points towards a daunting 45% price crash following the recent bearish breakout. This projection is derived by measuring the distance between the first swing high and swing low and adding it to the breakout point, currently situated at $1,825.
Eth Price Prediction: ETH ponders steep crash to $1,000 as it encounters key hurdle#Ethereum (ETH) price consolidated for the past year & more,forming a bullish setup. But circumstances have pushed the smart contract token to…
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In its descent, Ethereum has already breached the $1,639 support level, marking a crucial breakdown. Failure to surmount this hurdle may set Ethereum on a southbound trajectory, potentially leading to a plunge towards the psychologically significant level of $1,000. From its current position at $1,598, this descent would constitute a steep 38% drop.
On a more optimistic note, Ethereum has exhibited signs of bullish divergence in recent times. Despite producing three distinctive higher lows over the past month, this positive momentum is not fully supported by the Relative Strength Index (RSI). Such non-conformity often leads to a minor rally to the upside.
If Ethereum can successfully flip the $1,639 hurdle into a support level on the daily or three-day time frame, it may offer some respite for bullish traders. Such a move could attract sidelined buyers and potentially trigger a minor rally, with key resistance levels at $1,767 and $2,000 coming into focus.
Overall
Ethereum’s recent price actions have left the crypto community in anticipation of its next move. While the bearish outlook is bolstered by the breach of key support levels, the bullish divergence hints at the possibility of a short-term rebound. As the market watches Ethereum’s response to the $1,639 resistance level, the crypto landscape remains uncertain, with traders closely monitoring the developments in this pivotal battle for control.
