Ethereum Could See A 15% Drop This Week – A Retreat To The $1,000 Support?

Christian Encila

3 years ago

3 mins read

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Ethereum is having a good week, staying in the green zone of the crypto space for the past seven days and raising its price by 3.7%.

Ethereum is currently caught in an inverted pennant pattern
A resumption of the bearish trend is highly possible for the altcoin
$1,130 might be new support marker for Ethereum

The second largest cryptocurrency by market capitalization is currently trading at $1,324 according to Coingecko at the time of this writing while its 24-hour trading volume stands at a little over $5 billion.

But the widely recognized king of all altcoins and its investors should consider staying on their toes as analysts believe that the asset is headed for a significant price correction and bearish momentum.

This development once again contradicts bullish expectations for the crypto after successfully undergoing network upgrade last month.

Ethereum And Its Bearish Price Pattern

The inverted pennant pattern is where the Ethereum price has been revolving for the past days, with the crypto in danger of being out into an accelerated bearish momentum.

Source: TradingView

Under this pattern, a triangle formation appears where the price peaks before breaking the bottom support trendline and resumes its prior downtrend.

In Ethereum’s case, such a scenario would mean breaking the $1,250 support level all the way to $1,130. If that happens, the altcoin could be looking at a price drop of up to 14.3%.

However, there is a possibility that the reverse would happen and Ethereum will shatter the support overhead trendline which will prevent the looming bearish run of Bitcoin’s nemesis.

Bad Time To Buy Ethereum?

The negative news just keeps coming for Ethereum as crypto tracking tool Coincodex concluded it is not a good time to invest in the altcoin right now.

Come October 16, the digital asset is expected to lose 7.12% of its value and trade at $1,237.79. Technical indicators are also looking bad for the crypto, as its current sentiment is bearish and volatility remains high.

As for its Fear and Greed Index, Ethereum gained a score of 22, which indicates there is extreme fear. Also, out of 30 days, the cryptocurrency only managed to have 12 green days, equivalent to 40%.

Meanwhile, next year appears to be more promising for the altcoin king, as it is projected to end the year with a trading price of $2,156.26 which is significantly higher than its current value.

On that account, experts are saying that 2023 is a good year to buy the asset.

ETH total market cap at $160.36 | Featured image from Local News Today, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.