Ethereum Health: Analyst’s Red Flags And Failed Bullish Patterns

Christian Encila

1 year ago

3 mins read

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Ethereum (ETH) investors are bracing for a turbulent ride ahead as a well-regarded crypto analyst casts a shadow of doubt over the smart contract platform’s future.

In a recent report, Nicholas Merten predicts that Ethereum has less than a year to break free from an ascending triangle pattern, a technical indicator that holds significant implications for the cryptocurrency’s trajectory.

The Enigma Of The Ascending Triangle Pattern

In a nutshell, an ascending triangle pattern is a chart formation that typically indicates an impending breakout. It forms when the price of an asset reaches higher lows, forming a rising trendline (the ascending side of the triangle), while facing resistance at a horizontal level (the flat top of the triangle). The longer the pattern persists, the more pressure builds for a decisive price move, either upwards or downwards.

Merten, a prominent voice in the crypto community, has been closely monitoring Ethereum’s performance against this crucial pattern. According to Merten, Ethereum’s inability to convincingly breach the resistance at around $2,000 is a cause for concern.

“Ethereum cannot show up to the plate. It keeps getting shot down at around $2,000, and that’s okay for a while,” he emphasized.” But eventually, you’ve got to be able to either break out to the upside or, if you break through the ascending line of support to the downside, that spells bad news.”

ETHUSD trading at $1,622 as of Thursday, Sept. 14. Chart: TradingView.com

The Ethereum Exodus And Ambiguous Implications

Meanwhile, a separate report has presented a puzzling trend that adds to the uncertainty surrounding Ethereum. Approximately 640,000 ETH has recently exited exchanges, a move that could be interpreted as a bullish sign. This outflow suggests that investors might be hoarding Ethereum for the long haul, anticipating a future price surge.

However, caution is warranted. Ethereum’s long-term performance has not been impressive, with persistent bearish trends weighing it down. This raises questions about the credibility of the accumulation theory. While investors might be tempted to stock up on Ethereum at its current lower price point, they must tread carefully given the unpredictable nature of the cryptocurrency market.

At the time of writing, Ethereum is trading at $1,619, displaying a 1.7% gain over the past 24 hours, yet nursing a 1.0% loss in the seven-day period, according to CoinGecko.

The coming months will likely determine whether Ethereum will defy the odds, break free from its current constraints, and soar to new heights — or if it will succumb to the pressures outlined by Merten, leading to a collapse that could reshape the crypto landscape.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Daily Express

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.