Ethereum (ETH): A Bearish Setup Projects 16% Drop
- The primary technical pattern suggests a possible 16% crash for ETH price.
- The prevailing chart pattern’s lower border may serve as Ethereum’s dependable support at $2,477.
- Losing the crucial footing might see Ether dropping to $2,100.
ETH price remains within the woods as the leading alternative coin prints a cautious picture. The prevailing chart formation predicts a 16% fall for Ethereum. The crypto has to maintain beyond $2,477 to prevent plummets.
ETH Price Is Still Bearish
Ethereum sees its price forming a climbing wedge pattern on its 4hr chart, suggesting the alt might suffer a 16% fall to explore the value areas of $2,100. However, that will happen if the alt falls beneath the governing technical setup’s lower boundary at $2,477.
Ether grasps for support around the 21 4hr SMA near $2,510. ETH price will secure dependable support neat the 50 4hr Simple Moving Average at $2,477, the levels intersecting with the prevailing chart pattern’ bottom boundary.
Ethereum will be prone to further drops if it violates the mentioned defense line, possibly losing 16% to $2,100. The 27 January low of $2,349 might serve as Ethereum’s foothold with intensified selling pressure. Another support can appear at 25 January low near $2,221. Bulls’ failure to step up might mean the altcoin tumbling further, hitting the pessimistic goal of $2,100.
Buy orders resurgence will have Ethereum at the initial resistance near the 78.6% FIB retracement area at $2,544. Another obstacle may appear around 61.8% FIB retracement zone at $2,730, matching the 27 January high.
Bulls might see further obstacles around the 100 4hr Simple Moving Average near $2,783, the governing technical pattern’s upper boundary $2,861, the level intersecting with 50% retracement. Higher aspiration can aim 38.2% FIB retracement zone at $2,992.
The current bearish moves in the crypto space might support Ethereum’s pessimistic forecast. The global crypto market capitalization saw a more than 2.5% drop to $1.67 trillion. The narrative comes as Bitcoin bulls failed to maintain the upside trend. While publishing this article, Ethereum trades at $2,510 following downswings over the previous 24 hours.
Further bearishness will take the alt down to the reliable support of $2,477. Losing this barrier will make Ether vulnerable for a 16% crash, translating to lows of $2,100.