Ethereum’s price action was bullish on Monday and Tuesday, which tested but did not break the $ 2,650 barrier. On Wednesday, there was a correction and Ethereum fell below last week’s key support at $ 2,400. The weekly low hovered at $ 2,350, giving another chance for the bulls to support the uptrend.
At the time of writing, ETH is trading at $ 2,449 amid an uneven recovery. It is important to note that the main altcoin is within the descending triangle. If this pattern comes true, Ethereum could plummet, exploring levels below $ 2000.
In technical analysis, a descending triangle is a bearish formation that occurs within a downtrend as a continuation pattern. Two or more relatively equal lows form horizontal (x-axis) support, while a downtrend line is drawn alongside lower highs.
As the pattern develops, volume tends to shrink, but increases sharply as the x-axis breaks through. Volume is the key to confirming a downtrend. After the price drops below, a massive drop is expected. Note that triangles tend to have precise breakout targets as determined by measuring the distance between their widest points.
Therefore, if the descending triangle breaks out, the price of Ethereum could fall well below $ 2,000. A 27% drop below the breakout point will cause Ether to drop to $ 1,650.
In the meantime, Ethereum has already regained support at $ 2,400 and the bulls are working on a recovery again. If the uptrend breaks outside the downtrend line, the dive will be reversed in favor of extending the bullish leg above $ 3000.
Ethereum daily price levels
Spot Rate: $ 2430
Trend: short-term bullish
Volatility: low
Resistance: 50 SMA, $ 2650
Support: $ 2400, $ 2100 and $ 1750.
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