Ethereum Price Prediction as New Bearish Pattern Threats a Dive Below $2000

Ethereum Price Prediction: A double top formation in the daily chart hints the ETH price is at risk of a prolonged correction 

Published 15 hours ago

Ethereum Price Prediction: For nearly a month, the Ethereum(ETH) has been trading sideways resonating within two horizontal levels of $2400 and $2137. On December 28th, the daily chart showed a long-wick rejection candle at this overhead resistance reflecting the presence of high supply pressure. This selling pressure aligned with current market uncertainty hints at a possibility of potential correction as ETH may develop a double-top pattern.

Also Read: Vitalik Buterin Proposes Solutions for Ethereum PoS Complexity

Is ETH Price Heading Back to the $1850 Mark?

  • A Double Top pattern puts ETH price at 20% downside risk
  • A lower high formation in the daily RSI slope reflects weakening bullish momentum.
  • The intraday trading volume in Ether is $12.3 Billion, indicating a 23% loss.
Ethereum Price PredictionEthereum Price Prediction
Ethereum Price Prediction| TradingView Chart

In the last three weeks, the Ethereum price has shown two reversals from the $2400 resistance level, reflecting that the sellers are aggressively defending this level. A look at the daily time frame chart has shown this rejection as the formation of a bearish reversal pattern called ‘double top’.

In the last 48 hours, the ETH price has plunged 3.55% currently trading at $2303. With sustained selling, the coin price will attempt a break below the ascending trendline which has acted as a dynamic support for the past two months.

This breakdown would accelerate the supple pressure and bolster sellers to challenge the neckline resistance of $2135. Should the Ethereum coin break below this level, the sellers may prolong the correction another 13.5% to hit the $1850 mark.

Crypto Analyst Hints A Rally to $3593

While the current market correction and bearish pattern formation give a bearish outlook to the Ethereum price, the coin buyers can get an opportunity to counterattack at $2135. This neckline support aligned close with the 50-day EMA slope creates a strong demand area.

In addition, a renowned crypto analyst JacobCanfield added in his recent X-platform post that the ETH price has successfully retested this Weekly support($2124), suggesting it could act as a suitable launchpad to trigger a rally to $3583.

Thus, if the coin price shows suitability or buyers accumulation at the $2135-$2124 region, the aforementioned bearish thesis will be invalidated.

  • Relative Strength Index (RSI): A bearish divergence in the daily RSI slope increasing the possibility for a price correction.
  • Exponential Moving Average (EMA): The rising daily EMAs(20, 50, 100, and 200) hint the overall trend remains bullish.

Related Articles:

Share this article on:

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/ethereum-price-prediction-as-pattern-threats-dive-2000/