Ethereum Struggles to Recover from August Sell-Off
Ethereum, like other top cryptocurrencies, is facing difficulties in recovering from the August sell-off. The price of ETH dropped to $1,580 and is currently hovering around $1,646. There is a possibility of further decline to $1,140 due to the presence of a descending triangle pattern.
Key Points:
- Ethereum has been in a downtrend since November 2021, despite short-lived rallies in January and April 2023.
- The technical analysis suggests a potential 30% drop in ETH price to $1,140.
- Traders should wait for confirmation of the descending triangle pattern before taking short positions.
- A death cross formation on the daily chart could complicate the situation for bulls, hindering a move towards $2,000.
- An opposite reaction at the support level of $1,630 could disregard the triangle pattern and lead to a rebound above $1,700.
Hot Take:
Ethereum’s recovery from the August sell-off is uncertain. The descending triangle pattern and the potential death cross on the daily chart indicate a possible further decline in ETH price. However, a rebound is still possible if the support level holds and the Moving Average Convergence Divergence (MACD) indicator shows a buy signal. Traders should proceed with caution and closely monitor the market conditions.
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