Ethereum (ETH) has been on a bit of a rollercoaster lately. After a period of sideways trading, it hit a wall at $2,100 – a major resistance level. This rejection has analysts predicting further price drops.
Ethereum’s $2,100 Rejection: A Bearish Sign?
One analyst, Cryptododo7, shared their take on the situation. Their technical analysis suggests a bearish outlook for ETH in the coming weeks. They point to a few key factors:
- A Double Top: Over the past year or so, ETH formed a “double top” pattern – two similar price peaks ($4,100 in this case) separated by a valley, forming an “M” shape. This is often a bearish signal.
- Ascending Channel Breakdown: ETH broke below a long-term ascending channel, adding to the bearish sentiment.
- Price Drop: Since the double top, ETH’s price has fallen by 54%.
The $1,200 Target
Based on their analysis, Cryptododo7 predicts ETH could fall to between $1,130 and $1,200. This prediction is based on the height of the now-broken ascending channel. Currently, ETH is trading around $1,880.
Beyond the Charts: Macroeconomic Factors
It’s not just technical analysis driving the price. The overall crypto market is feeling the pressure from uncertainty around Bitcoin and the broader economy. While some positive developments in US crypto policy have occurred, concerns about a potential recession and trade wars are causing investors to sell off riskier assets like crypto.
What’s Next for ETH?
For Ethereum to reverse this bearish trend, buyers need to step in and push the price above $2,100. Until then, the outlook remains somewhat gloomy.
