Ethereum’s Falling Wedge Could Propel Price to $3,000

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Ethereum continues to be one of the poorest performers among the largest cryptocurrencies by market capitalization, despite its immense popularity. This downward trend has led many investors into negative territory as prices have dropped. If this trend persists, the ETH price may sink below $2,000 once again. However, a bullish pattern has emerged on the Ethereum price chart, suggesting a potential reversal could be on the horizon.

Ethereum Falling Wedge Pattern Emerges

The recent price decline has given rise to a falling wedge pattern in the Ethereum cryptocurrency. With the recent recovery from its lows, this pattern is nearing completion, indicating that significant movements may occur soon.

Crypto analyst CobraVanguard highlighted this in an analysis on TradingView, showcasing the falling wedge pattern. While this pattern can suggest bullish conditions for an asset, it can also lead to bearish outcomes for Ethereum’s price. The analyst outlines two potential scenarios for the altcoin’s future price movements.

The first scenario involves a breakout from the falling wedge pattern evident on the 1-Day timeframe. Should this breakout occur, Ethereum’s price might soar from this point. Additionally, the analyst has pointed out a bullish divergence on the MACD, which supports the possibility of a breakout from the falling wedge pattern.

Conversely, if the price fails to exit this pattern, the cryptocurrency is expected to decline due to increasing bearish pressure on the second-largest cryptocurrency by market capitalization, as large holders have been selling off over the past month. The analyst also suggests that the fifth wave could unfold, potentially driving the price higher.

What Are the Next Steps for ETH Price?

The bullish scenario arising from a breakout is particularly crucial for Ethereum’s price, as it may reverse the bearish trend affecting its value. The analysis suggests that a breakout could propel the ETH price to around $3,000, representing over a 30% increase from its current position.

Conversely, if a price breakdown occurs, Ethereum may decline further below $2,000. The analyst’s projections indicate the altcoin could drop to as low as $1,778. Such a scenario, combined with the weak volume for ETH observed thus far, could lead to a further decline to $1,500.