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Ethereum is still one of the worst performers of the largest cryptocurrencies by market capitalization, despite being incredibly popular. This bearish move has left more and more investors in the red as the price fell. If this continues, the ETH price could fall below $2,000 again. But there is still a possibility for a reversal as a bullish pattern has formed on the Ethereum price chart.
Ethereum Falling Wedge pattern appears
With the recent price drop, a bearish wedge pattern has formed for the Ethereum cryptocurrency. Now, with the recovery from its lows, this pattern is nearing completion, meaning the next steps will begin soon.
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Crypto analyst CobraVanguard pointed this out in a analysis on TradingView, which highlighted the falling wedge pattern. While this pattern can be quite bullish for an asset, it can also be very bearish for the Ethereum price. The crypto analyst thus outlines the two possible scenarios for the price of the altcoin.
The first of these scenarios is a breakout from the falling wedge pattern that has formed in the 1-day time frame. If this breakout happens, Ethereum price could skyrocket from here. In addition, the crypto analyst has also outlined a bullish divergence on the MACD for the Ethereum price, lending credence to a possible breakout from the falling wedge pattern.
On the other hand, where the price does not break this pattern, the price of the cryptocurrency is expected to decline. This is due to increasing bearish pressure on the second largest cryptocurrency by market capitalization major holders continue the sell-off during the past month. The analyst also explains that the fifth wave could eventually occur, something that could push the price even higher.
Where could ETH price go from here?
The bullish scenario after a breakout is especially important for Ethereum price as it could end the bearishness that has been causing the price to fluctuate. In the analysis, the crypto analyst outlines that a breakout from here would send the ETH price as high as $3,000, which is an increase of over 30% from here.
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However, if a price drop occurs, the Ethereum price could fall below $2,000 again. The analyst’s chart puts the altcoin price at a low of $1,778. Such a development, in combination with the bad volume for ETH so far this could trigger a further breakdown towards $1,500.
Featured image created with Dall.E, chart from Tradingview.com
