Ethereum, the second-largest digital asset has been lagging behind other major crypto assets, raising questions on its short-term prospects. While these coins have achieved recent all-time highs in the continuing cycle, ETH has been on a downtrend after revisiting the $4,000 level. A crypto analyst considers the present motion as one in all the worst because the asset entered the market.
Worst Ethereum Chart In Years Emerges
The bearish state of the market has been reflected significantly in Ethereum price motion prior to now several weeks. Seasoned crypto analyst and trader Mags revealed that ETH is at a pivotal moment because it grapples with severe negative performance.
Delving into ETH’s motion in the continuing bull market cycle, Mags highlighted that the altcoin has “one in all the worst charts of all time.” His prognosis implies that this current bull cycle is likely to be the least productive for the asset since its inception, with traders uncertain about its potential of hitting a recent all-time this cycle.
Taking a look at the chart, Ethereum seems to have made multiple bullish attempts prior to now yr that were cut short by strong resistance. Mags noted that the value tried 3 times throughout this cycle but did not break above the range high of $4,000.
Each failed attempt has led to a deeper retracement as seen within the chart. On the last rejection, the value broke down much lower than the mid-range along with trading below the upward-slopping trendline support from the cycle bottom.
Because of this, the market expert has identified two potential paths for its price trajectory within the short term. One path suggests a much larger bearish movement and the opposite hints at a big upside trend, allowing it to reclaim critical resistance levels and triggering renewed momentum.
For the primary scenario, Mags has identified that ETH keeps heading toward the downside with none major support. Thus, he believes that the altcoin is prone to a deeper decline to the range low of $1,060. Within the second scenario, Mags claims ETH might move to the $4,000 mark to make one other bullish breakout attempt after reclaiming the $2,500 level.
Nonetheless, from a more technical standpoint, the expert is confident that the bearish scenario is more more likely to occur, predicting an extension of the continuing descent. Meanwhile, for ETH to show bullish again, it must not less than revisit the upward-slopping trendline on the chart.
Breakout Opportunity Emerges For ETH
While ETH eyes further decrease, key developments hint at growing momentum for an upsurge. Technical expert Jonathan Carter has spotted a Descending Channel formation on the Ethereum chart within the 2-hour time-frame.
Historically, a descending channel pattern has served as a precursor for an upswing. With the value trading throughout the pattern and drawing closer to the upper resistance trendline, ETH is more likely to break out to the upside.
When the breakout from the resistance trendline occurs, Carter predicts a push to multiple targets comparable to $1,962, $2,143, $2,320, and $2,530. This trend reversal is predicted to be bolstered by increased volume during a breakout attempt.
Featured image from Unsplash, chart from Tradingview.com
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