Ethereum $1K price support in danger as Q2 comes to a close
Ethereum's native token Ether (ETH) fell on the final trading day of Q2/2022, trading in sync with riskier assets amid persistent fears of higher inflation and rising interest rates. And it could result in further declines heading into Q3.
ETH's price plunged nearly 5% this June 30 to $1,044 following a four-day losing streak. The ETH/USD pair has also broke below its interim rising trendline support, which in conjugation with a horizontal trendline resistance to the upside, constitutes an "ascending triangle" pattern.
Ascending triangles are bearish continuation patterns when they occur after a sharp downtrend. Therefore, a breakdown out of an ascending triangle typically results in the price falling further lower, typically by as much as the structure's maximum height.
Ether had been trending inside an ascending triangle since June 13, breaking below the triangle's lower trendline on June 29 — a move that accompanied a spike in trading volumes, confirming traders' conviction about a further downtrend.
As a result, ETH's downside target in Q3, led by the ascending triangle setup, comes to be near $835, almost 20% lower than today's price.
The bearish technical outlook is also boosted by an uptrend in the number of ETH on exchanges.
Notably, investors have deposited around 1 million Ether tokens across all crypto trading platforms since May 2022, according to data from CryptoQuant. As the amount of ETH rises in exchanges' wallets, it indicates a growing selling pressure in the Ether market.
Institutional investors have also been limiting their exposure in Ether by withdrawing capital from the dedicated investment funds, CoinShares noted in its weekly report.
Ether-focused investment products have witnessed $136.9 million worth
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