A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first

A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first

The cryptocurrency market was hit by another round of selling on May 26 when the price of Bitcoin (BTC) fell to $28,000 and Ether briefly dipped below $1,800. The ETH/BTC pair also fell below what traders consider to be a major uptrend line, a move that analysts say could result in the price of Ether correcting to new lows.

ETH/USDT 1-day chart. Source: TradingView

Here is a summary of what various analysts in the market are saying about the move lower for Ethereum and what it could mean for its price in the short term.

Price consolidation will eventually result in a sharp move

The independent market analyst Michael van de Poppe, who public the following graph that shows the behavior of Ether near its minimum range, provided a brief check on support and resistance levels to watch out for.

A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first
ETH/USD 1-hour chart. Source: Twitter

Van de Poppe said:

“The question will be whether we can bounce from here and break the $1,940 level. If that happens, I guess we will continue to $2,050. If it doesn’t, then the markets are looking below $1,800 probably.”

ETH Could Turn New Lows Into A Bullish Falling Wedge

According to Twitter Crypto analyst Tony, Ether price “still looking for a leg down to load up.”

A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first
ETH/USDT 4-hour chart. Source: Twitter

Although it may seem negative, this would actually be a positive sign according to Cointelegraph contributor Jon Morgan, who noted that the pattern depicted on this chart is a falling wedge, a “standard bullish candlestick/bar chart pattern that is indicative of a market that has broken down.” moved to an extreme and is likely to reverse”.

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Morgan said:

“Very high expectation rate of creating a violent corrective move to the upside or an entirely new uptrend.”

Bitcoin Dominance Rises

A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first
1-day chart of the ETH/BTC pair. Source: Twitter

According to economist Caleb Franzen, the ETH/BTC pair lost a key support and this is notable because:

“This means that at least one of these statements will be true: ETH is weakening relative to BTC; BTC will outperform ETH; altcoins will underperform BTC.”

Besides the discussion on the ETH/BTC pair, Twitter user CrediBULL Crypto noted that price is “starting to take some of our local lows.”

A falling wedge pattern points to an eventual Ethereum price reversal, but traders expect further declines first
3-day chart of the ETH/BTC pair. Source: Twitter

The analyst said:

“Any relief here is temporary until we break through the bottom of this range in my opinion. In fact, we may be heading even lower than shown here before we stage a recovery, but we will assess that once we reach my target.”

In general, heContinued weakness with the ETH/BTC pair has the potential to result in the price of Ether and altcoins trending lower, while BTC could hold its current price or even rise higher as traders rotate out of underperforming positions into Bitcoin.

The total cryptocurrency market capitalization currently stands at $1.235 trillion and the dominance rate of Bitcoin is 46.2%.

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

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