Ethereum Price Prediction as New Bearish Pattern Threats a Dive Below $2000

29.12.2023

Ethereum Price Prediction: For nearly a month, the Ethereum(ETH) has been trading sideways resonating within two horizontal levels of $2400 and $2137. On December 28th, the daily chart showed a long-wick rejection candle at this overhead resistance reflecting the presence of high supply pressure. This selling pressure aligned with current market uncertainty hints at a possibility of potential correction as ETH may develop a double-top pattern.

Also Read: Vitalik Buterin Proposes Solutions for Ethereum PoS Complexity

Is ETH Price Heading Back to the $1850 Mark?

A Double Top pattern puts ETH price at 20% downside risk
A lower high formation in the daily RSI slope reflects weakening bullish momentum.
The intraday trading volume in Ether is $12.3 Billion, indicating a 23% loss.

Ethereum Price Prediction| TradingView Chart

In the last three weeks, the Ethereum price has shown two reversals from the $2400 resistance level, reflecting that the sellers are aggressively defending this level. A look at the daily time frame chart has shown this rejection as the formation of a bearish reversal pattern called ‘double top’.

In the last 48 hours, the ETH price has plunged 3.55% currently trading at $2303. With sustained selling, the coin price will attempt a break below the ascending trendline which has acted as a dynamic support for the past two months.

This breakdown would accelerate the supple pressure and bolster sellers to challenge the neckline resistance of $2135. Should the Ethereum coin break below this level, the sellers may prolong the correction another 13.5% to hit the $1850 mark.

Crypto Analyst Hints A Rally to $3593

While the current market correction and bearish pattern formation give a bearish outlook to the Ethereum price, the coin buyers can get an opportunity to counterattack at $2135. This neckline support aligned close with the 50-day EMA slope creates a strong demand area.

In addition, a renowned crypto analyst JacobCanfield added in his recent X-platform post that the ETH price has successfully retested this Weekly support($2124), suggesting it could act as a suitable launchpad to trigger a rally to $3583.

Thus, if the coin price shows suitability or buyers accumulation at the $2135-$2124 region, the aforementioned bearish thesis will be invalidated.

Relative Strength Index (RSI): A bearish divergence in the daily RSI slope increasing the possibility for a price correction.
Exponential Moving Average (EMA): The rising daily EMAs(20, 50, 100, and 200) hint the overall trend remains bullish.