Ethereum

Ethereum (ETH) Price Might Drop 35% in Q2, This Is What Traders Can Expect

Written by: Delma Wilson

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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May 3, 2022

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Cryptocurrency prices have been combined with Bitcoin buying and trading beyond the $38,000 mark in recent days. At $38,467, BTC was basically unchanged in terms of purchasing and selling. According to CoinGecko’s pricing, the global crypto market’s value has risen to $1.81 trillion in the last 24 hours. However, Ether increased modestly to $2,843.

As it approaches breaking below its “ascending triangle” pattern, Ethereum’s native coin Ether (ETH) could see a 35 percent market correction in Q2.

On May 2, the price of Ether fluctuated between gains and losses while trading at $2,825, indicating that traders are undecided about their next move.

Surprisingly, the Ethereum token swayed around a rising trendline that forms an ascending triangle pattern when combined with a horizontal line resistance. 

Before establishing its ascending triangle, Ether’s price was heading lower, increasing the odds of a breakdown in the coming weeks.

Ether’s fake-out move from more than a month ago is another gloomy warning.

Ether, for example, broke above its ascending triangle on March 28 before returning to its range a week later, indicating a phoney breakout. The conversion of the triangle’s top to resistance, followed by a period of constant selling, suggests that bearish momentum is growing and the market is approaching a breakdown point. 

Breaking below the Triangle’s lower trendline, on average, places the downside objective at a length equal to the triangle’s maximum height, or somewhere between $1,820 (-35%) and $2,160 (-30%), depending on the breakout point. 

Institutional Investors Draw Money out of ETH

Meanwhile, according to the latest CoinShares report, accredited investors have been withdrawing money from Ethereum-based investment products in 2022.

Specifically, until April 22, around $169 million has already departed Ethereum funds. In contrast, Ethereum’s layer-1 rivals, such as Solana (SOL) and Avalanche (AVAX), as well as its leading competitor, Bitcoin (BTC), saw capital inflows. 

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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