Market analysts say that the price of Ether (ETH) may fall to $1,000 if a bearish chart pattern break is confirmed.
Key takeaways:
- The Ether bear flag aims to drop the ETH price by 50% to $1,075.
- Ether risks a long liquidation worth more than $1.70 billion if the price falls below $2,000.
- Whale accumulation weakens as major ETH holders reduce exposure.
Ether bear flag hits ETH price of $1,000
The downtrend in Ether could accelerate if the price on the daily chart falls below the lower bear flag trend line at $2,000, where a similar collapse in January led to a 41.5% drop in the price of ETH.
Related: Taker’s Ether volume turns negative for the first time in two months: will ETH drop below 2k next? dollars?
A bear flag pattern is a bearish continuation setup that forms when price consolidates in an ascending channel after a pointed price drop.
The flag’s measured target, calculated by taking the height of the previous downtrend added to the $2,000 breakpoint, is $1,075, representing a 49% decline from the current price.
ETH/USD weekly chart. Source: Cointelegraph/TradingView
“$ETH will soon break a bear flag pattern” – Coin Signals analyst he said in a Monday post on X, adding that if the price fails to stay above the lower trend line at 2,000, there will be a “sell-off to $1,800 or a new low.”
Fellow analyst Keith Alan he said for his followers to be “prepared for an unpleasant scenario”, which includes confirmation of a death cross between the 21-day basic moving average (SMA) and 50-day SMA and confirmation of a bear flag on the daily time frame.
“Momentum indicators also show deterioration in both the daily and weekly RSI intervals,” the analyst said he said in a recent article on X.
“However, the failure to establish support opens the door to a sequence of increasingly lower levels of technical support” towards a target bear flag structure of around $1,300, he added.
ETH/USD daily chart. Source: X/Keith Alan
Fellow Crypto Analyst Patel he said is ETH confirmation of the formation of a growing wedge was ongoing with a target drop of $1,500.
“Ethereum has lost a key rising trendline. As long as price remains below it, weakness may continue.”
ETH/USD daily chart. Source: X/Crypto Patel
Meanwhile, Ethereum’s liquidation map shows that a correction below $2,000 would result in over $1.70 billion worth of long leveraged ETH liquidation across all exchanges, according to CoinGlass data.
ETH exchange liquidation map. Source: CoinGlass
Ethereum whale accumulation is degenerating
Ether’s recent rebound to $2,400 has not resulted in widespread accumulation across major wallet cohorts, Glassnode data showed.
For example, the number of mega-whale wallets holding over 10,000 ETH plummeted to a 10-month low of 1,050, and the 30-day change dropped to just -70, a level last seen in early February.
Ethereum mega-whale address balance (>10k ETH). Source: Glassnode
In other words, huge players are taking advantage of recent liquidity to reduce risk, reflecting a lack of confidence in the medium term.
The picture is similar among cohorts with smaller wallets.
Ethereum wallets holding 1,000 to 10,000 ETH are also degenerating, hitting a nine-month low of 4,750 on May 8. The 30-day change remains negative and is hovering around -50 at the time of writing.
Whale and shark address balance in Ethereum. Source: Glassnode
Taken together, the data suggests continued distribution and indigent confidence among key cohorts of ETH holders, increasing the risk of a deeper decline if the $2,000 level is breached.
This reduction in whale numbers is consistent with recent inflows into stock exchangesindicating that the path of least resistance remains downward in the near future and selling pressure is increasing.
