Is the Ethereum course on the verge of a major crash? It is precisely this exciting question that we are investigating in this analysis from ETH.
Ethereum (ETH) has not had it easy lately. Due to the high gas prices, the leading smart contract platform had to take a lot of criticism and gave competitions an enormous amount of room to grow. This fact is of course also reflected in the Ethereum price, which has not yet reached its parabolic rise compared to other crypto currencies.
As if that weren’t enough, a current chart pattern is fueling fears that the big crash is still ahead of the Ethereum price. The big question that arises from this is: Do we soon see an ETH price below $ 1,000?
Is the trend reversal threatening the Ethereum course?
This morning, Bitcoin-Bude’s Trading & Crypto Channel drew attention to the fact that ETH could possibly be facing a major price movement. The direction of this possible price movement is unlikely to appeal to many. Ignoring them because of this could be a costly mistake.
The analysis there speaks of a medium-term reversal pattern that has developed over the last 3 months and could be on the verge of a bearish outbreak. The reversal pattern is what is known as an inverted rising wedge formation that dissolves downwards in 3 out of 4 cases. Temporary increases within the formation are often a clear sign that the eruption is imminent. The resulting price target for the Ethereum course results from the lowest point at the beginning of the formation, which in the present case is around $ 880.
This price target is approximately 48% below its current price level of $ 1,668 at the time of writing. This scenario would imply that the entire market might go through the first major correction that would certainly make many doubt the continuation of the current bull market.
But it doesn’t have to come to that, because firstly, this price target is often not achieved in the first place and secondly, there is still no breakout of the formation at all.
ETH key levels in the battle between bulls and bears
The key level that can currently be observed in the Ethereum price is the current support zone between $ 1,570 and $ 1,670, as well as the price level of $ 1,720, which previously served as support lines and is currently turning into resistance.
The above figure shows that the Ethereum price is only given a small range between its current resistance line and the lower edge of the support zone. At this point in time, we have to wait and see how the battle between bulls and bears will end here.
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