Story Highlights
Ethereum is facing a critical juncture where a descending wedge pattern could form.
Strong buying at current levels could signal a bullish reversal with a target of 13.40% upside.
If the current support is broken, Ethereum could drop to $1,491 or even $1,360.
Ethereum, the largest altcoin in the industry, has been the center of much speculation and analysis recently. Ethereum is currently trading at $1,612, down slightly by 0.28% during the session.
A closer look at ETH’s price trajectory shows that the coin has found solace in the demand band between $1,613 and $1,643.
The past few weeks haven’t been particularly good for ETH’s price action. After approaching the coveted psychological $2,000 mark, the Ethereum price faced a sudden surge in supply. This resulted in a 19.62% plunge over the past 60 days. This decline resulted in a “death cross” on the daily chart.
Adding to the complexity is a falling wedge pattern that has formed in Ethereum’s price chart. Traditionally, this pattern is viewed as a bearish signal, suggesting that the downtrend may continue.
However, lower price rejection at current support levels suggests the potential for a bullish turnaround.
If the price of Ethereum manages to rebound, it will retest the breakout support trendline from the 2023 bull run. Such a rebound could result in a refreshing 13.40% gain, ensuring that the ETH price remains on an upward trajectory.
Technical indicators:
RSI: The daily RSI line is in a sideways trend as it hovers above the oversold territory.
MACD: MACD and Signal lines are in a tight sideways trend, struggling to maintain a bullish alignment.
Will Ethereum Price Drop Below $2,000?
Turning our sights to potential price objectives, a bearish breakdown could push Ethereum down to $1,491, a 7.5% drop. If the bears sustain the gains, Ethereum could slide further to the next support at $1,360.
Conversely, the path to redemption for the bulls lies in a breakout above the two important resistance levels of $1,800 and $2,000.
