The Ethereum price has been losing momentum ever since it failed to sustain yearly highs at $2,400. Although the bulls tried hard to hold the price above $2,200, the fresh bearish interference compelled the price to drop below these levels. Besides, the crypto markets have turned extremely bearish in the short term, and hence, the major tokens are believed to trigger a decent pullback in the coming days.
While the price is approaching the November highs, can we expect a bullish rebound?
The investors continue to remain optimistic about the upcoming trend, resulting in a notable rise in buying pressure. However, the price in the long term trades within a bearish pattern and is feared to drop hard after reaching the apex of the consolidation. A popular analyst, Peter Brandt, referring to the bearish pattern, suggests the price may witness a steep drop and even trade in a 3-digit figure soon.
The above chart indicates that the ETH price began trading within an ascending triangle after achieving the head and shoulder pattern. Technically, the price is expected to trigger a fine upswing after reaching the apex, but a majority of the chart pattern fails to follow the ‘textbooks’ that raise a higher probability of a bearish breakout. Therefore, if the ETH price confirms trading within a rising wedge pattern, then it may result in a massive price drop, leading to a price plunge to $1000 initially and later to $650.
“Classical chart patterns in price charts are not scared – they fail to perform according to the text books all the time
But, if the rising wedge in Ethereum complies with the script, the target is $1000, then $650
I shorted ETH on Friday – I have a proactive B/E stop.”
