Traders target $1,400 Ethereum price after ETH drops closer to a critical support level
On June 8, the Ethereum network successfully underwent the merge to become proof-of-stake on its Ropsten testnet, but the news had little impact on ETH price.
With the Ropsten upgrade now looking more like a “buy the rumor, sell the news” type of event, most analysts have kept a short-term bearish outlook for Ether price. Let’s take a look.
Can Ether escape the head-and-shoulders pattern?
Pseudonymous Twitter analyst “Cactus” pointed out a bearish head-and-shoulders pattern and questioned whether Ether price would be able to follow the sharp downside that typically follows the completion of the pattern.
“This is what we are getting excited about? Hard to be bullish any timeframe until we S/R [support/resistance] flip 2K.”
The areas of support to keep an eye on below $1,800 were highlighted in the following chart posted by crypto analyst and pseudonymous Twitter user “il Capo of Crypto,” who ominously noted, “Lower highs all the time and that support has been touched a lot of times already.”
The analyst said,
“Clean break of $1,700 and last leg down would be confirmed, with main target = $1,000.”
The descending triangle pattern also forecasts further downside
A separate, but equally bearish descending triangle chart pattern was highlighted by pseudonymous analyst “Crypto Tony,” who pondered if this is “something too obvious” to ignore.
Based on the lower area of support highlighted on the chart provided by Crypto Tony, a breakdown below the current price could see Ether pullback to the $1,450-to-$1,600 range.
Related: Ethereum ‘double Doji’ pattern hints at a 50% ETH price rally by September
Price momentum turns negative
A more macro view of the general weakness being displayed by Ether was offered by pseudonymous cryptocurrency trader “Cantering Clark,” who said, “If I didn’t think that this time was slightly different, I would look at this $ETH chart and think ‘Big ships turn slowly, and they don’t stop easily.’”
Cantering Clark said,
“By high timeframe measures, this could be the beginning of actual momentum down.”
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