Ethereum Price Nears Major Resistance At $2,200, Why A 13% Crash Could Follow

A crypto analyst has predicted that the Ethereum worth might be gearing up for a further 13% crash to new lows. At present, the cryptocurrency is hovering close to the essential $2,200 resistance, the place a rejection may gas additional volatility and set off a major decline. 

Ethereum Value Set For $1,700 Crash

In a latest technical evaluation published by MadWhale, a TradingView crypto professional, the Ethereum worth is projected to expertise a severe price breakdown, declining by 13% to achieve $1,700. The analyst attributes this bearish outlook to the cryptocurrency’s recent price action and chart patterns. 

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MadWhale shared an Ethereum worth chart exhibiting that the cryptocurrency is shifting inside a Descending Channel. This channel is mostly a bearish chart sample shaped when two downward-sloping development traces join at decrease highs and decrease lows. It normally signifies a main downtrend, during which sellers dominate the market relatively than consumers.

Presently, the Ethereum worth is quick approaching a important resistance space at $2,200, located across the higher boundary of the Descending Channel sample and marked by the pink shaded space on the chart. Traditionally, when its worth reaches this space, it usually encounters vital promoting strain that results in a pointy downward worth reversal. 

MadWhale’s evaluation means that the cryptocurrency could fail to interrupt this crucial resistance space, triggering his predicted decline to $1,700. This goal aligns with a sturdy help space the place the cryptocurrency has beforehand discovered shopping for curiosity. 

Notably, Ethereum’s volume evaluation additionally signifies fluctuating market participation, with no sturdy indicators of bullish drivers or sturdy momentum. If quantity stays low and promoting strain will increase, Ethereum is prone to expertise additional worth declines.

Analyst Predicts Three Key Targets For Ethereum

Regardless of the continued promoting strain and decline within the Ethereum worth, crypto analyst Patron on X (previously Twitter) stays optimistic concerning the cryptocurrency’s future outlook. The market professional has predicted three bullish targets for the Ethereum worth, believing that it is just a matter of time earlier than its current downtrend dissipates. 

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The analyst famous that Ethereum had reached a key help degree, the place a bounce from this threshold may trigger a surge to his projected targets marked by yellow traces on his worth chart. With the Ethereum worth buying and selling at $1,989 as of writing, the analyst forecasts that it may attain a primary goal of $2,296, representing a 15.44% enhance. 

After this surge, Patron predicted that Ethereum would reclaim earlier highs and rally to $2,913, marking a 46.46% acquire. For his closing goal, he initiatives a surge to $4,000, reflecting a 101% leap to a brand new ATH. Notably, the analyst claims that if Ethereum can attain these bullish targets, it may yield a major 100% revenue for buyers.

Featured picture from Unsplash, chart from Tradingview.com