Ethereum continues to struggle after the initial market crash on October 10 that rocked the market. Subsequent market declines resulted in… largest altcoin by market capitalization towards $3,000, breaking below that value for the first time earlier this week. As the price looks for support, there is a possibility of a rebound that could cause the price to boost by more than 10%. However, given that the rebound in the dead count is ultimately bearish, the target remains much lower.
Why Ethereum May Fall
Cryptocurrency analyst TradingShot stated in a recent analysis: scratched what does the Ethereum price look like, which has been in a bearish trend since the beginning of October. This began after the altcoin hit a up-to-date all-time high just above $4,900 before being hit tough in the October 10 market-wide crash.
The digital asset has since been caught in a downward channel. This reduction in the channel resulted in the double-digit decline that the altcoin has seen since then. As the cryptocurrency analyst explains, since this trend was established, the Ethereum price has seen a decline of 27.50% in both of its bearish legs.
Recently, however, there has been a slight reversal in the tidal wave after the price dropped below $3,000and this happened after Ethereum made higher lows on the 1-day RSI. For the most part, this is a bullish rally in the cryptocurrency’s price, but the catch is that this will likely only be the case in the miniature term.
If the bullish divergence does indeed play out as expected, Ethereum price will certainly be poised for some recovery. TradingShot believes this recovery could boost the ETH price by 10%, pushing it to $3,400 before the bears move in again.
However, the overall trend remains downward, which may pose an obstacle to economic recovery. Once the bears build enough resistance to stop the rally, the declines are expected to resume. If this happens, it may mean that the recovery was merely a reflection of the dead cat.
This $3,400 level lies on the 1-day MA50, which is vital because it was the rejection point on October 27. Last time, this led to a 27.50% crash in the Ethereum price. This time, when the sell-off starts again, the cryptocurrency analyst believes it could cause a pointed drop below $3,000.
As for the time frame, it’s from tardy November to early December only a few weeks left. The crash is expected to push Ethereum down to $2,650 before finding a bottom, marking a up-to-date lower low.
Featured image from Dall.E, chart from TradingView.com
