Falling wedge pattern points to eventual Ethereum price reversal, but traders expect more pain first
The cryptocurrency market was hit with another round of selling on May 26 as Bitcoin (BTC) price dropped to $28,000 and Ether briefly fell under $1,800. The ETH/BTC pair also dropped below what traders deem to be an important ascending trendline, a move which traders say could result in Ether price correcting to new lows.
Here’s 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.
A brief check-in on what levels of support and resistance to keep an eye on was provided by independent market analyst Michaël van de Poppe, who posted the following chart showing Ether trading near its range low.
Van de Poppe said,
According to Twitter analyst Crypto Tony, Ether price is “still looking for that leg down to load up on.”
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 “bullish standard candlestick/bar chart pattern that is indicative of a market that has moved to an extreme and is likely to reverse."
Morgan said,
Related: Ethereum price dips below the $1.8K support as bears prepare for Friday’s $1B options expiry
According to economist Caleb Franzen, the ETH/BTC pair lost a key support and this is notable because:
Adding to the ETH/BTC discussion, Twitter user CrediBULL Crypto noted that the price is “starting to take some of our local lows.”
The analyst said,
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
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