Wednesday, July 24, 2024

Traders target $1,400 Ethereum price after ETH drops closer to a critical support level

On June 8 the Ethereum network successfully underwent the merge to become proof-of-stake on its Ropsten testnet, but the news had little impact on ETH price.

With the Ropsten upgrade now looking more like a buy the rumor, sell the news type of event, most analysts have kept a short-term bearish outlook for Ether price. Let’s take a look.


ETH/USDT 1-day chart. Source: TradingView

Can Ether escape the head and shoulders pattern?

Twitter analyst, “Cactus”pointed out a bearish head and shoulders pattern and questioned whether Ether price would be able to follow the sharp downside that typically follows the completion of the pattern.

ETH/USD 1-week chart. Source: Twitter

Cactus said,

“This is what we are getting excited about? Hard to be bullish any timeframe until we S/R [support/resistance] flip 2K.”

The areas of support to keep an eye on below $1,800 were highlighted in the following chart posted by crypto analyst and pseudonymous Twitter user il Capo of Crypto, who ominously noted that “Lower highs all the time and that support has been touched a lot of times already.”

ETH/USD 1-day chart. Source: Twitter

The analyst said,

“Clean break of $1,700 and last leg down would be confirmed, with main target = $1,000.”

The descending triangle pattern also forecasts further downside

A separate, but equally bearish descending triangle chart pattern was highlighted by Crypto Tony, who weighted if this is “something too obvious” to ignore.

ETH/USD 1-day chart. Source: Twitter

Based on the lower area of ​​support highlighted on the chart provided by Crypto Tony, a breakdown below the current price could see Ether pullback to the $1,450 to $1,600 range.

Related: Ethereum ‘double Doji’ pattern hints at a 50% ETH price rally by September

Price momentum turns negative

A more macro view of the general weakness being displayed by Ether was offered by cryptocurrency trader Cantering Clark, who said “If I didn’t think that this time was slightly different, I would look at this $ETH chart and think ‘Big ships turn slowly, and they don’t stop easily.’”

ETH/USD 1-week chart. Source: Twitter

Cantering Clark said,

“By high timeframe measures, this could be the beginning of actual momentum down.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.