Declining Artistic Patterns Indicate Deeper Declines
Despite the positive fundamentals for Ethereum, technical indicators show warning signs, as the price has failed to maintain the $2,600 level and is currently around $2,520.
On the weekly chart, the 50-week moving average is about to drop below the 100-week moving average - known as the “Death Cross” - which could lead to a decline of up to 35%, driving the price down to the support level of $1,750.
Ethereum Price Chart - Source: TradingViewAdditional Warning Indicators:
Liquidation of bullish positions exceeding $56.8 million within 24 hours
The Relative Strength Index (RSI) and Stochastic indicators show weakness in momentum
Analyst Weslad points to a potential corrective pattern of type ABCDE (Elliott wave)
Despite the overall optimism, some traders remain skeptical, evidenced by Ethereum's failure to break through the $3,000 barrier at a time when Bitcoin is nearing unprecedented levels. The situation for Ethereum could worsen if macroeconomic conditions encourage risk aversion, potentially increasing selling pressure from small traders and leveraged speculators.