Bearish head and shoulders pattern forces Ethereum traders to re-adjust their price targets
Crypto markets remain volatile and a handful of seasoned traders believe that the bearish trend will continue as long as stock markets are chasing new lows.
Most investors would agree that crypto is now in a bear market and the current price action for Bitcoin (BTC) and Ethereum (ETH) suggest that capitulation and consolidation are a ways away.
Data from Cointelegraph Markets Pro and TradingView shows that Ether still struggles to reclaim the $2,000 level as support and this zone has been a notable support and resistance since February 2021.
Insight into the major support level Ether needs to clear by the monthly close to regain a bullish outlook was touched on by market analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart indicating the area near $2,269 is a key level.
Rekt Capital said,
The possibility of a breakdown from the current support level was outlined in the following chart posted by crypto trader and pseudonymous Twitter user ‘Crypto Tony’, who is “expecting another drop further into the OB” where they are looking to have some orders filled.
Crypto Tony said,
Related: ‘Huge testing milestone’ for Ethereum: Ropsten testnet Merge set for June 8
A potentially bearish sign appeared with the completion of a head and shoulders pattern on the weekly chart, a point highlighted in the following chart posted by ‘CryptoCharts’.
CryptoCharts said,
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