Ethereum price forecast: Here’s why ETH is in danger of crashing below $1,000
Ethereum exchange rate (ETH) is a cryptocurrency. It is open source and you can run programs on the Ethereum blockchain. The picture shows 3 Ethereum coins in symmetric alignment.
Is the Ethereum price on the brink of a big crash? This is exactly the exciting question we are exploring in this analysis of ETH.
Ethereum (ETH) has not had it easy lately. Due to the high gas prices, the leading smart contract platform had to take some criticism and gave competitors an enormous amount of room to grow. This circumstance has naturally also been Crypto Engine reflected in the Ethereum price, which has not yet been able to reach its parabolic rise compared to other cryptocurrencies.
As if that were not enough, a current chart pattern is fuelling fears that the big crash is yet to come for the Ethereum price. The big question this raises is: Will we soon see an ETH price below $1,000?
Is the Ethereum price threatening a trend reversal?
This morning, Bitcoin-Bude’s Trading & Crypto Channel drew attention to the fact that ETH could possibly be on the verge of a major price movement. The direction of this possible price movement might not be to the liking of many. But ignoring it could be a costly mistake.
The analysis there talks about a medium-term reversal pattern that has formed over the last 3 months and could be on the verge of a bearish breakout. The reversal pattern is a so-called inverted rising wedge formation that resolves downwards in 3 out of 4 cases. Temporary rises within the formation are often a clear sign that the breakout is imminent. The resulting price target for the Ethereum price is derived from the lowest point at the beginning of the formation, which in this case is around $880.
This price target is about 48% below the current price level of $1,668 at the time of writing. This scenario would imply that the entire market would possibly go through the first major correction, which would certainly make many doubt the continuation of the current bull market.
But this does not have to happen, because firstly, this price target is often enough not even reached and secondly, there is no breakout from the formation here at all.
The key levels of ETH in the battle between bulls and bears
The key levels to watch for in the Ethereum price are the current support zone between $1,570 and $1,670, as well as the price level of $1,720, which previously served as support lines and is currently turning into resistance.
The chart above shows that the Ethereum price is thus only given a small range between its current resistance line and the lower edge of the support zone. At this point, it is therefore a case of waiting to see how the local showdown between bulls and bears will turn out.