Ethereum Forms Falling Wedge Pattern That Could Send Price To $3,000

Ethereum is still one of the worst-performer of the top largest cryptocurrencies by market cap despite being incredibly popular. This bearish movement has seen an increasing number of investors being moved into the red as the price drops. If this continues, then the ETH price could fall below $2,000 again. But there is still a possibility for a reversal as a bullish pattern has formed on the Ethereum price chart.

Ethereum Falling Wedge Pattern Appears

With the recent decline in price, there has been the formation of a falling wedge pattern for the Ethereum cryptocurrency, Now, with the rebound from its lows, this pattern has neared its completion, meaning the next steps will begin soon.

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Crypto analyst CobraVanguard pointed this out in an analysis on TradingView which highlighted the falling wedge pattern. This pattern, while it can be quite bullish for an asset, it can also be very bearish for the Ethereum price. So, the crypto analyst outlines the two possible scenarios for the altcoin’s price.

The first of these scenarios is a breakout from the falling wedge pattern that has formed on the 1-Day timeframe. If this breakout happens, then the Ethereum price could rocket from here. In addition to this, the crypto analyst has also outlined a bullish divergence on the MACD for the Ethereum price, which lends credence to a possible breakout from the falling wedge pattern.

However, on the flip side, where the price does not break out from this pattern, the cryptocurrency’s price is expected to fall. This is due to the mounting bearish pressure on the second-largest crypto by market cap as large holders continue sell-offs over the last month. Also, the analyst explains that the fifth wave could end up playing out, something that could push the price even higher.

Where Can The ETH Price Go From Here?

The bullish scenario following a breakout is especially important for the Ethereum price as it could put an end to the bearishness that has rocked the price. In the analysis, the crypto analyst outlines that a breakout from here would send the ETH price as high as $3,000, which is a more than 30% increase from here.

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However, if there is a breakdown in the price, then the Ethereum price could be seeing another decline below $2,000. The analyst’s chart puts the altcoin price as low as $1,778. Such a development, coupled with the poor volume for ETH so far, could trigger a further breakdown to $1,500.

Featured image created with Dall.E, chart from Tradingview.com