Ethereum risks crashing under $2K as ETH paints bearish 'symmetrical triangle' — analyst
Ethereum's native token Ether (ETH) will likely fall below $2,000, according to one popular market analyst.
Pseudonymous market analyst Wolf shared the downside outlook on March 7 as Ether's price rebounded by over 3% to nearly $2,650, a day after testing its upward sloping trendline near $2,500.
Ignoring the intraday upside reversal, Wolf anticipated the Ether's decline to continue further.
At the core of Wolf's analogy was a "symmetrical triangle," a classic technical analysis pattern that forms when the price fluctuates between two converging trendlines.
In a "perfect" scenario, the price breaks out of the triangle range in the direction of its previous trend. For the same reason, many analysts call symmetrical triangles a continuation pattern.
Ether has been bouncing inside a symmetrical triangle pattern since the beginning of this year. ETH had fallen by more than 50% after topping out in November 2021 at above $4,850. As a result of the "continuation" rule, ETH's triangle pattern appears to be skewed toward the bears.
In other words, the price can fall by as much as the maximum distance between the triangle's upper and lower trendline after breaking out of the pattern.
As a result, Ether's decisive move below the Triangle support — if accompanied by a spike in volume — could have it test levels below $2,000 as the next downside target.
"Bulls will try to defend long time diagonal, bears will try to push price to $1.8 thousand–1.9 thousand," Wolf wrote.
Wolf's bearish outlook for Ether came despite a recent uptick in ETH's accumulation by its richest investors.
Ethereum addresses, which hold between 1 million and 10 million Ether, have accumulated 2.2% of the total ETH supply minted in the past six months, according to
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