New Bearish Pattern Emerged Plots 8% Drop in ETH Price; Time to Reaccumulate?

Ethereum Price Prediction: The ongoing consolidation in Ethereum price hit a minor roadblock at $1800 psychological support and has turned sideways for nearly a week now. Amid the consolidation phase, the price resonated between two converging trendlines revealing the formation of a bearish flag. Here’s how this pattern may influence the Ethereum coin’s future trend.

Key Points: 

• The Ethereum price narrowing within two trendlines can be considered a no-trading zone
• The coin price breakout on either side will determine the potential trend in ETH
• The intraday trading volume in Ether is $9.04 Billion, indicating a 42.5% gain.

Source- Tradingview

On May 3rd, the US Fed announced a 25 basis points rate hike during the FOMC meeting. The crypto market reacted positively to these expected numbers, triggering a minor uptick in several cryptocurrencies. 

However, the Ethereum price still within the triangle pattern indicated uncertainty among market participants. With a 1% intraday fall, the coin price turned down from the pattern’s resistance trendline indicating a prolonged consolidation phase. 

Also Read: Top 10 Crypto Margin Trading Platforms In Australia

Anyhow, the bearish pattern creates a higher possibility for a breakdown below the support trendline and resumes the prevailing downfall. A daily candle closing below the trendline will increase the selling pressure and tumble the Ethereum price 10% down to hit $1650.

On a contrary note, a breakout above the overhead trendline will signal the belonging of a fresh recovery rally which may surge the price back to the last swing high of $2133.

Technical Indicator

Relative Strength Index: The daily RSI slope wavering around the neutral line accentuates an indecisive market sentiment.

Bollinger Band: The Ethereum price flipped the midline of the Bollinger band indicator into a viable resistance offering sellers an additional resistance to pressurize buyers for longer correction.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1884
• Trend: Bearish
• Volatility: High
• Resistance level- $1965 and $2133
• Support level- $1800 and $1700