Ethereum Price Falls in Line with Bitcoin
Ethereum has been following the same trajectory as Bitcoin in recent weeks. When Bitcoin’s price dipped from its peak, so did the price of ETH. This decline in price has revealed a concerning pattern on the Ethereum chart known as a falling wedge pattern. Crypto analyst Alan Santana has highlighted this pattern and painted a negative picture of what it could mean for Ethereum.
Falling Wedge Pattern Indicates Bearish Trend
Santana’s analysis on the TradingView website explains that the appearance of the falling wedge pattern does not bode well for the Ethereum price. The ETH chart had previously formed a rising wedge, which eventually broke bearish. This suggests that Ethereum is experiencing a normal but rapid correction along with the rest of the crypto market.
Santana also supports their analysis with the Ethereum Moving Average Convergence/Divergence (MACD) indicator. The MACD on the daily chart clearly shows a decline, adding credibility to the mounting bearish pressure on ETH.
Predicted Decline in Ethereum Price
Following the double-top formation where ETH briefly reached $2,400, expectations have shifted in the opposite direction. Santana predicts a decline to at least $1,800 from here. If further downside occurs, they expect more drawdowns leading to a potential bottom around $1,600.
As of now, Ethereum is trading around $2,200, indicating that bearish pressure is still building. If it breaks down from this level, Santana’s prediction could prove accurate and ETH’s price could drop back to mid-October levels.
Hot Take: Potential Bearish Future for Ethereum
Ethereum’s falling wedge pattern and declining MACD on the daily chart point towards a bearish trend for the cryptocurrency. Analyst Alan Santana predicts a decline in ETH’s price to at least $1,800, with the possibility of further drawdowns reaching around $1,600. As Ethereum follows Bitcoin’s trajectory, it is important for investors to closely monitor the market and prepare for potential price drops. If the current bearish pressure continues, ETH could fall back to mid-October levels. Stay informed and make strategic decisions to navigate this challenging market.
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