Key takeaways:
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ETH risks a 15% correction toward $3,560 after breaking below its symmetrical triangle pattern.
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Bulls must defend the ascending trendline support to avoid a deeper decline.
Ethereum’s Ether (ETH) token price has plunged by more than 7.50% this week, led by de-risking sentiment across the crypto market.
ETH/USD daily price chart. Source: TradingViewMoreover, technical analysis shows that the ETH price drop has triggered a classic bearish reversal setup that risks more downside ahead.
Ether price risks 15% drop in the near term
Ethereum’s breakdown from the symmetrical triangle tilts the short-term outlook bearish. Typically, such patterns resolve in the direction of the prevailing trend, but a downside breach can flip the pattern into a reversal signal.
The measured move from this triangle setup points toward $3,560, suggesting ETH could fall another 15% from current levels before October if selling pressure persists.
The target falls in the support range that analyst Michaël van de Poppe highlights.
In his Tuesday post, the chartist discusses the prospects of the ETH price falling inside the $3,550-$3,750 area, noting the 20-week exponential moving average (20-week EMA; the blue wave in the chart below) at around $3,685.
ETH/USD weekly price chart. Source: TradingView/Michaël van de Poppe“Compression is building up –> Big move to occur at a later time,” Poppe says, adding:
The bulls have one line of defense despite the triangle breakdown setup.
ETH is hovering near a rising trendline that has underpinned its uptrend since April, and preceded 90%-125% rallies.
ETH/USD daily price chart. Source: TradingViewA bounce from the trendline, followed by a decisive close above the 50-day exponential moving average (50-day EMA; the red wave) near $4,250, could trigger an extended recovery toward the triangle’s upper trendline, aligning with the $4,600-$4,700 range.
Ethereum rebound could extend to $7,000
Bouncing from the ascending trendline support increases Ether’s odds of hitting a new record high at $7,000, according to a separate analysis shared by Crypto GEMs.
The outlook is based on the Wyckoff Accumulation method, which suggests ETH had already completed its “spring” and “test” phases earlier this year.
These phases typically mark the end of a bearish cycle and the beginning of a sustained markup.
ETH/USD daily price chart. Source: TradingViewIn this framework, Ethereum’s recent decline represents the “Last Point of Support” (LPS), a healthy retest of a former resistance level before price resumes higher.
The setup puts ETH on course for a breakout rally targeting the $7,000 area if validated.
Related: ETHZilla unleashes fresh $350M war chest for Ethereum bets
That means at least 65% gains by 2025’s end, echoing several other ETH price targets shared by analysts earlier this year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/last-chance-for-ethereum-eth-price-pattern-breaks-down-as-4k-must-hold?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
