Ethereum is still one of the worst performers of the largest cryptocurrencies by market capitalization, despite being extremely popular. This bearish move has seen more and more investors find themselves in the red as the price falls. If this continues, the price of ETH could once again fall below $2,000. However, there is a possibility of a trend reversal as a bullish pattern has formed on the Ethereum price chart.

Ethereum Falling Wedge Pattern Emerges

With the recent decline in Ethereum prices, a falling wedge pattern has formed. Now, with a bounce from the lows, this pattern is nearing completion, which means that the next steps will begin soon.

Cryptocurrency analyst CobraVanguard pointed this out in analysis on TradingView, which highlighted a descending wedge pattern. This pattern, while it can be quite bullish for the asset, can also be very bearish for the Ethereum price. So, the crypto analyst presents two possible scenarios for the altcoin’s price.

The first of these scenarios is a breakout from the falling wedge that formed on the 1-day time frame. If this breakout occurs, the Ethereum price could shoot higher. Apart from this, the crypto analyst has also outlined a bullish divergence on the MACD for the Ethereum price, which lends credence to a possible breakout from the falling wedge.

On the other hand, if the price fails to break out of this pattern, the cryptocurrency is expected to decline in price. This is due to the growing bearish pressure on the second-largest cryptocurrency by market capitalization, as immense owners continue to sell over the past month. The analyst also explains that a fifth wave may play out, which could trigger an even greater price augment.

How far can the price of ETH go?

A bullish scenario after the breakout is especially critical for the Ethereum price, as it could put an end to the bearish sentiment that has shaken the price. In the analysis, the crypto analyst emphasizes that a breakout from this point would push the ETH price up to $3,000, which is an augment of over 30%.

However, if there is a price crash, Ethereum price could fall below $2,000 again. The analyst’s chart indicates that the altcoin’s price will fall to $1,778. This development, coupled with miniature volume for ETH so far, this could result in a further decline to $1,500.

Featured image created with Dall.E, chart from Tradingview.com