{"id":11132,"date":"2022-05-27T00:27:47","date_gmt":"2022-05-27T00:27:47","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/falling-wedge-pattern-points-to-eventual-ethereum-price-reversal-but-traders-expect-more-pain-first\/"},"modified":"2022-05-27T00:27:49","modified_gmt":"2022-05-27T00:27:49","slug":"falling-wedge-pattern-points-to-eventual-ethereum-price-reversal-but-traders-expect-more-pain-first","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/falling-wedge-pattern-points-to-eventual-ethereum-price-reversal-but-traders-expect-more-pain-first\/","title":{"rendered":"Falling wedge pattern points to eventual Ethereum price reversal, but traders expect more pain first"},"content":{"rendered":"
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The cryptocurrency market was hit with another round of selling on May 26 as Bitcoin (BTC)\u00a0price dropped to $28,000 and Ether (ETH) briefly fell under $1,800. The ETH\/BTC pair also dropped below what traders deem to be an important ascending trendline, a move that traders say could result in Ether price correcting to new lows.<\/p>\n

ETH\/USDT 1-day chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Here\u2019s a rundown of what several analysts in the market are saying about the move lower for Ethereum and what it could mean for its price in the near term. <\/p>\n

Price consolidation will eventually result in a sharp move<\/h2>\n

A brief check-in on what levels of support and resistance to keep an eye on was provided by independent market analyst Micha\u00ebl van de Poppe, who posted<\/a> the following chart showing Ether trading near its range low. <\/p>\n

ETH\/USD 1-hour chart. Source: Twitter<\/em><\/figcaption><\/figure>\n

Van de Poppe said: <\/p>\n

\u201cThe question will be whether we can bounce from here and break the $1,940 level. If that happens, I\u2019m assuming we\u2019ll continue $2,050. If it doesn\u2019t, then the markets are looking at <$1,800 probably.\u201d<\/p><\/blockquote>\n

ETH could make new lows into a bullish falling wedge<\/h2>\n

According to Twitter analyst\u00a0Crypto Tony, Ether price is \u201cstill looking for that leg down to load up on.\u201d<\/p>\n

ETH\/USDT 4-hour chart. Source: Twitter<\/em><\/figcaption><\/figure>\n

While it might look negative, this development is actually a positive sign, according to Cointelegraph contributor Jon Morgan, who noted that the pattern outlined on this chart is a falling wedge, a \u201cbullish standard candlestick\/bar chart pattern that is indicative of a market that has moved to an extreme and is likely to reverse.\u201d<\/p>\n

Morgan said:<\/p>\n

\u201cVery high expectancy rate of creating either a violent corrective move higher or an entirely new uptrend.\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>Ethereum price dips below the $1.8K support as bears prepare for Friday\u2019s $1B options expiry<\/em><\/strong><\/p>\n

Bitcoin dominance rises<\/h2>\n
ETH\/BTC 1-day chart. Source: Twitter<\/em><\/figcaption><\/figure>\n

According to economist\u00a0Caleb Franzen, the ETH\/BTC pair lost a key support and this is notable because:<\/p>\n

\u201cThis means that at least one of these statements will be true: $ETH is weakening relative to $BTC; $BTC will outperform $ETH; Alts will underperform $BTC.\u201d<\/p><\/blockquote>\n

Adding to the ETH\/BTC discussion,\u00a0Twitter user CrediBULL Crypto noted that the price is \u201cstarting to take some of our local lows.\u201d<\/p>\n

ETH\/BTC 3-day chart. Source: Twitter<\/em><\/figcaption><\/figure>\n

The analyst said: <\/p>\n

\u201cAny relief here is temporary until we traverse to the bottom of this range, imo. In fact, we may head even lower than pictured here before staging a recovery, but will assess once we hit my target.\u201d<\/p><\/blockquote>\n

In general, continued weakness with the ETH\/BTC pair has the potential to result in the price of Ether and altcoins trending lower while BTC could hold at its current price or even head higher as traders rotate out of underperforming positions into Bitcoin. <\/p>\n

The overall cryptocurrency market cap now stands at $1.235 trillion and Bitcoin\u2019s dominance rate is 46.2%.<\/p>\n

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 conduct your own research when making a decision.\n<\/p>\n<\/div>\n