Ethereum (ETH) price has lost all of its weekly gains that it made after Greyscale’s court win against the SEC. The native asset of the leading smart contract platform is trading close to a very critical trendline. If bulls don’t step in soon, bears may target a massive downside in the coming months.
On Friday, Bitcoin price fell below $26,000 once again. The pioneering cryptocurrency fully retraced its Tuesday pump, which pushed it above $28,000. The weakness in BTC has also affected the ETH price, which fell 3.5% on Thursday. On Friday, the price remained in a consolidation.
Why Is ETH Price Falling?
On 31st August, the SEC postponed the approval of spot Bitcoin ETF, pushing it to the next deadline. This triggered a sell-off in Bitcoin and Ethereum. The prices of both cryptocurrencies hit a fresh weekly low. Earlier this week, Greyscale Bitcoin Trust won its lawsuit against the Securities and Exchange Commission (SEC).
The court ruled that the SEC must reconsider Grayscale Investments’ application to launch the first bitcoin exchange-traded fund (ETF). The decision was a major victory for Grayscale and the crypto industry, and it sent shockwaves through the markets.
Bitcoin prices surged by more than 5% in the hours following the ruling, and other cryptocurrencies also saw gains. The news was seen as a positive sign for the future of the crypto industry, and it raised hopes that a Bitcoin ETF could be approved in the near future.
Ethereum To Outperform Bitcoin?
The following ETH/BTC chart shows that the pair is attempting to break out of the falling wedge pattern. Falling wedge breakouts tend to be extremely bullish and act as a great reversal pattern. Ethereum price may outperform Bitcoin in case of a breakout by 10%.
At the time of writing, the pair sits at 0.063. A breakout from the trendline can send the pair above the 0.07 level, which is the next major resistance level after the reclaim of the 200-day moving average. Many traders exchange their BTC to ETH when this pair flips bullish.
Ethereum Price Prediction Hangs By A Thread
A look at the ETH to USD pair reveals that the pair has been respecting an upward trendline since its June 2022 bottom. A breakdown below this trendline would be cataclysmic for Ethereum price prediction. In case of a breakdown, the first bearish target would be the $1080 support level.
A higher timeframe analysis also shows a formation of the ascending triangle pattern. These patterns usually break to the downside. The technical price target in case of an ascending triangle breakdown is $759, which is 54% below the current price level.
Source: https://www.analyticsinsight.net/ethereum-price-prediction-eth-may-tank-50-before-halving/