The bearish setup positions Ethereum price to extend the decline toward $2,000. Ethereum's native token Ether (ETH) rates may fall to a two-month low after it slid below support at around $2,954, based on a classic trading pattern. The $2,954 level represents a so-called neckline constituting a head and shoulders setup. In detail, the said support level appears to be a floor to three peaks, with the middle one (HEAD) higher than the other two (SHOULDERS).
A breach below the $2,954 level signals a trend reversal, suggesting that ETH/USD may fall by a length equal to the distance between the head's peak and neckline. Peter Brandt, CEO of global trading firm Factor LLC, shared the bearish pattern late on Sept. 20, noting that a successful breakdown below $2,954 could crash prices to around $2,000.
"I am NOT saying I believe it, and I am saying I am not shorting it — but like it or not, if you own ETH, you will have to deal with it. This possible H&S exists, whether it is completed, fails, or morphs, it exists."
Research conducted by Samurai Trading Academy notes that head and shoulders reach their projected target almost 85% of the time.
Ether traded at $2,805 as of 00:22 UTC, its lowest level since Aug 7. However, the cryptocurrency later recovered to reach an intraday high of $3,104 and was wobbling around $3,000 at the time of writing. The seesaw price moves came as a part of a correction trend that started after ETH/USD formed a sessional top at $4,030 on Sept 3. As a result, the pair initially fell by as much as 25.34% to hit $3,009. It then recovered back to as high as $3,675.
Nonetheless, bulls started losing control all over again at the beginning of this week as a wave of selling triggered by a tumult in China's heavily indebted property sector hit crypto and traditional markets alike. Ether dropped by 10.58% on Sept. 20. Some analysts anticipate that the Ethereum token would recover again if its price held above historic support levels. For instance, pseudonymous chartist PostyXBT mentioned $2,850 as "an important level" that kept Ether's bullish bias intact.
"Good to see ETH testing a key level of support at the same time as BTC," the Twitterati noted. "Similar to BTC at ~$40k, ~$2850 is an important level that must hold."
PostyXBT's chart setup envisioned ETH/USD to retest $4,000 in the coming sessions. The Crypto Monk, another pseudonymous analyst, added that the latest declines flushed out weak traders and presented opportunities for strong hands to buy and send the Ether prices to a new all-time high.
Brandt also noted that ETH/USD's drop might lead to a potential "bear trap," a technical pattern that occurs when an asset's price performance incorrectly signals an end of a bullish trend. As a result, traders with leveraged short positions could suffer losses should the spot ETH/USD rates rebound.
"I have a strong suspicion that recent weakness, especially overnight, successfully washed out weak longs and might have trapped some bears," Brandt wrote. "Of course, subsequent price action would need to confirm this."
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | ![]() |
Bitcoin predictions | 59.6% | 88 | $23 133.58 | 1.42% | 2.54% | $445 891 712 056 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ![]() |
Ethereum predictions | 62.8% | 85 | $1 599.61 | 1.91% | -3.05% | $195 750 597 878 | ||
3 | ![]() |
Tether predictions | 90.8% | 1 | $1.000200 | 0% | -0.01% | $67 517 933 738 | ||
4 | ![]() |
Binance Coin predictions | 66.8% | 72 | $308.24 | 1.67% | 1.96% | $48 671 544 877 | ||
5 | ![]() |
USD Coin predictions | 90.8% | 1 | $1.000019 | 0.01% | 0% | $43 082 295 663 | ||
6 | ![]() |
XRP predictions | 62.4% | 74 | $0.411013 | 1.13% | 0.32% | $20 880 931 213 | ||
7 | ![]() |
Binance USD predictions | 93.6% | 1 | $0.999820 | -0.03% | 0% | $15 795 578 015 | ||
8 | ![]() |
Cardano predictions | 60% | 79 | $0.388458 | 4.39% | 7.93% | $13 434 775 806 | ||
9 | ![]() |
Dogecoin predictions | 64% | 75 | $0.087652 | 3.23% | 1.90% | $11 628 821 575 | ||
10 | ![]() |
Lido stETH predictions | 93.6% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 | ||
11 | ![]() |
Polygon predictions | 64.8% | 78 | $1.15 | 6.09% | 12.97% | $10 037 291 413 | ||
12 | ![]() |
Solana predictions | 56% | 90 | $24.52 | 3.04% | -1.34% | $9 108 971 332 | ||
13 | ![]() |
Polkadot predictions | 60.8% | 87 | $6.59 | 3.20% | 5.92% | $7 587 320 916 | ||
14 | ![]() |
Avalanche predictions | 60% | 92 | $20.97 | 17.46% | 21.07% | $6 601 353 493 | ||
15 | ![]() |
SHIBA INU predictions | 62.4% | 84 | $0.000012 | 2.99% | -2.16% | $6 480 328 787 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2023 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.