The Wedge pattern on the daily chart meets a bearish trend, indicating further drops in the value of Ether. The second-largest cryptocurrency by market capitalization might start a bullish trend, depending on the market’s viability.
Despite completing the long-awaited Merge on September 15th, the Ethereum bloodbath does not seem to stop.
After the switch from proof of work (PoW) to proof of stake (PoS), the price of Ether (ETH) did not change significantly. According to the price chart, it is constantly subject to rejection at its immediate resistance of USD 1,350.
Since the value of Ether forms a Falling Wedge pattern, investors might suffer further bearish trouble.
The Daily Chart of the Ether Price Indicates Further Drops
The second-largest cryptocurrency by market capitalization might extend its bearish trend by forming a Falling Wedge pattern on the price chart. According to that model, a trend line connects a cryptocurrency’s upper and lower limits, indicating further momentum in its price.
The daily price chart of the Ether price shows that the Wedge pattern meets a bearish trend, indicating further drops. In other words, that model indicates a bullish or bearish reversal in its value.
According to cryptocurrency analysts, the current bullish trend in the value of Ether is at a slow pace. That situation suggests a bearish reversal might occur if the price does not break USD 1,364. Although ETH may sink in the bottom line and trade below USD 990, a bullish run might start if it remains above USD 1,400.
The Ether Price Might Reach USD 1,400 before a Bearish Trend
The daily price chart of Ether suggests selling pressure, which makes investors feel pessimistic. The 50-day EMA is at USD 1,384, where the upper boundary of the Bollinger band is. If the price of EH remains between the 50-day EMA and the 100-day EMA, it might rise significantly.
Since Ether is creating a bearish storm as the RSI-14 is below 50, the positive momentum will not occur in the short term. However, the price might make a slight bullish pullback and test USD 1,400 before a bearish trend as the MACD line moves upward.
The lower Bollinger Band limit is USD 1,195, a critical support level on the price chart. If Ether breaks the support level, it might drop sharply and reach USD 998.
However, the Shanghai upgrade might bring Ether a ray of hope in 2023. ETH may invalidate its bearish analysis and start a bullish trend in the short term, depending on the viability of the crypto market.
The price of Ether might reach USD 2,000 by the beginning of the first quarter of 2023. It might also exceed its previous all-time high of USD 4,878, achieved in November 2021.
Meanwhile, Ether is trading at around USD 1,309 and has accumulated a 0.7% gain over the last 24 hours. While its trading volume is above USD 5.05 billion, its market capitalization is about USD 157.82 billion, according to CoinGecko.
By Alexander Salazar
