Ethereum’s price maintained a volatile trajectory over the past few months after repeated price swings in the market. On 25 October, the 2nd largest crypto-asset recorded its most recent price pump, hiking by 16 percent in a single day and recovering most of the losses suffered a couple of weeks prior. At press time, Ethereum continued to consolidate under the $190 range. However, major bearish signs were evident on the chart.
Source: Coinstats
1-day chart
Ethereum’s 1-day chart highlighted that since the month of August, Ethereum’s price had breached two major bullish patterns and it was followed by an identical hike after the depreciation period. From 5 August to 6 September, ETH navigated within the trend lines of a falling wedge and the token’s valuation declined by around 28 percent over a period of 32 days. The bullish breakout saw ETH recover 24 percent of its losses over the last period, but an immediately bearish pullback invalidated its bullish hike.
A similar pattern surfaced back in October, wherein a familiar falling wedge was recorded in the charts. The value depreciated down by 18 percent over 15 days and it was followed by a recovery of 16 percent. It can be observed that both the hike and decline were fairly close in terms of percentage in the previous two patterns.
At press time, Ethereum’s price was navigating within an ascending channel, increasing the possibility of a bearish breakout in the future. The incline in terms of valuation over the pattern was registered to be around 12 percent. If the bearish breakout continues to follow past trends, a drop of around 10 percent in valuation may surface for Ethereum over the next few weeks. Such a substantial drop could see ETH breach the support at $177.45, and a possible consolidation under it may happen.
The MACD line also suggested that a bearish crossover was in the cards for ETH, suggesting that the breakout may occur sooner rather than later.
Ethereum has struggled to maintain a high price valuation lately and recent market trends suggest that its price will continue to struggle for a while.
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