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Ethereum Falls Below a Crucial Pattern: Will It Reverse or Hurt More?

Ethereum has been experiencing constant pressure, and a more severe decline could be imminent. According to CoinMarketCap, the second-largest cryptocurrency by market value has had difficulty staying over $2,000 and is currently trading at about $1,811, up just 0.06% over the past day.

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Ethereum may go as low as $1,600, according to analyst Bit Bull. He predicts that the asset would drop below $1,820 and then break below a symmetrical triangle. Low trading volumes and a retest after that breakdown have heightened fears of another drop. He clarified that the move indicates that market sentiment is still pessimistic.

Bit Bull stated, “ETH is now looking bearish following the breakdown and a retest.” Since falling below that crucial level, Ethereum has stayed below $2,000, a decrease fueled by many unfavorable technical and market factors. “Technically, there’s a strong possibility for further downside,” he continued.

Ethereum Dominance Faces Critical Test

Bit Bull also pointed out that Ethereum’s hegemony in the broader cryptocurrency market is beginning to wane in addition to the triangle breakup. He noted that ETH’s dominance chart was showing a descending triangle, which suggests that the altcoin will continue to perform poorly in the market. “We might see another move down after that, but a retest toward the upper trendline is likely,” he continued.

 

Rekt Capital, another analyst, noted that since June 2023, its market dominance has drastically decreased, going from 20% to 8%. He did, however, also point out that historically, ETH has recovered from that 8% level. He raised the prospect that, if market conditions are right, a comparable recovery might occur once more.

In a recent piece, Doctor Profit expressed his opinion that ETH is now undervalued. He pointed out that the cryptocurrency had hit a critical support level at $1,800, which he had previously determined was the aim of the most recent decline. He claims that Ethereum has reached a historically significant price zone as a result of the significant decline.

Indications of Buildup and Hope for Recovery

Additionally, according to Doctor Profit’s analysis, investor concern may be generating a purchasing opportunity. He stated that some investors are already growing their holdings and that Ethereum’s present price may encourage accumulation. This opinion is supported by data from IntoTheBlock, which indicates a bullish trend in the “Concentration” metric—which represents activity among major Ethereum holders.

Astronomer, a cryptocurrency analyst, agreed. He thinks Ethereum is still cheap and might even return to $4,000 in the future. Several technical indicators corroborate his prognosis, and like others, he saw the $1,800 price range as a historically substantial support that has historically resulted in robust price rebounds.

Adding to the optimistic outlook, Crypto Patel shared that ETH could enter a new phase of growth. He referenced the Wyckoff chart, suggesting that Ethereum might be heading into phase 3 of that model, which could push the price up to $6,800—a level that would mark a new all-time high.