Ethereum Price Nears Major Resistance At $2,200, Why A 13% Crash Could Follow

A crypto analyst has predicted that the Ethereum worth may very well be gearing up for a further 13% crash to new lows. At the moment, the cryptocurrency is hovering close to the essential $2,200 resistance, the place a rejection may gasoline additional volatility and set off a big decline. 

Ethereum Price Set For $1,700 Crash

In a latest technical evaluation printed by MadWhale, a TradingView crypto skilled, the Ethereum worth is projected to expertise a extreme worth breakdown, declining by 13% to achieve $1,700. The analyst attributes this bearish outlook to the cryptocurrency’s latest worth motion and chart patterns. 

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MadWhale shared an Ethereum worth chart displaying that the cryptocurrency is shifting inside a Descending Channel. This channel is usually a bearish chart sample shaped when two downward-sloping pattern traces join at decrease highs and decrease lows. It often signifies a main downtrend, through which sellers dominate the market moderately than consumers.

Presently, the Ethereum worth is quick approaching a predominant resistance space at $2,200, located across the higher boundary of the Descending Channel sample and marked by the purple shaded space on the chart. Traditionally, when its worth reaches this space, it usually encounters important promoting stress that results in a pointy downward worth reversal. 

MadWhale’s evaluation means that the cryptocurrency might fail to interrupt this essential resistance space, triggering his predicted decline to $1,700. This goal aligns with a sturdy assist space the place the cryptocurrency has beforehand discovered shopping for curiosity. 

Notably, Ethereum’s quantity evaluation additionally signifies fluctuating market participation, with no sturdy indicators of bullish drivers or sturdy momentum. If quantity stays low and promoting stress will increase, Ethereum is more likely to expertise additional worth declines.

Analyst Predicts Three Key Targets For Ethereum

Regardless of the continuing promoting stress and decline within the Ethereum worth, crypto analyst Patron on X (previously Twitter) stays optimistic in regards to the cryptocurrency’s future outlook. The market skilled has predicted three bullish targets for the Ethereum worth, believing that it is just a matter of time earlier than its current downtrend dissipates. 

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The analyst famous that Ethereum had reached a key assist degree, the place a bounce from this threshold may set off a surge to his projected targets marked by yellow traces on his worth chart. With the Ethereum worth buying and selling at $1,989 as of writing, the analyst forecasts that it may attain a primary goal of $2,296, representing a 15.44% enhance. 

After this surge, Patron predicted that Ethereum would reclaim earlier highs and rally to $2,913, marking a 46.46% acquire. For his last goal, he initiatives a surge to $4,000, reflecting a 101% soar to a brand new ATH. Notably, the analyst claims that if Ethereum can attain these bullish targets, it may yield a big 100% revenue for traders.

Featured picture from Unsplash, chart from Tradingview.com