Ethereum has had a tough week so far, losing nearly 300 points in market value.
Although ETH is back above $3,000, it’s sitting on shaky ground.
Renowned analyst Peter Brandt believes ETH could dive towards $2,000.
Share this article
Ethereum has breached a critical support barrier, leaving its price prone to a steep decline.
Ethereum Primed for Further Loses
Ethereum could be due for another dip.
ETH took a 16% nosedive following Monday’s open alongside other digital assets and traditional markets. The second-largest cryptocurrency by market cap’s price dropped from a daily high of $3,346 to a low of $2,805.
Given the magnitude of the downswing, trading veteran Peter Brandt highlighted the possibility that a head-and-shoulders pattern was created on Ethereum’s daily chart. The bearish technical formation has been developing since early May as a direct result of ETH’s price action.
Now that Ethereum has dipped below the head-and-shoulders’ neckline at $3,000, the odds favor a steeper correction.
I am NOT saying I believe it and I am saying I am not shorting it — but like it or not if you own $ETH you will have to deal with it. This possible H&S exists, whether it is completed, fails or morphs, it exists. I am NOT a hater. pic.twitter.com/PG50GwaZkI
— Peter Brandt (@PeterLBrandt) September 20, 2021
Further selling pressure around the current price levels could push ETH’s price down by another 25% to $2,250.
This target is determined by measuring the height between the pattern’s head and neckline and adding that distance upwards from the breakout point.
Whales Sell on Weak Support
Behavior analytics platform Santiment reveals that whales have been cashing out while Ethereum sits on top of weak support.
The number of addresses holding 100,000 to 1,000,000 ETH has decreased by more than 3.3% since Sep. 17. Roughly five whales have left the network or redistributed their token since then, which adds credence to the pessimistic outlook that Brandt detailed.
On-chain data shows that a large number of addresses acquired a significant amount of Ethereum at $3,500. If ETH manages to reclaim this resistance level as support, it could have the strength to invalidate the pessimistic scenario and advance further.
Under such unique circumstances, ETH would likely rise to retest its mid-May all-time high of $4,385.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Ethereum DeFi Tokens Jump Amid Market Recovery
Ethereum DeFi tokens are riding a bullish wave. DeFi Blue Chips Rally Several of DeFi’s leading projects are soaring. Curve, Aave, Sushi, and Compound, which all launched on Ethereum, are…
Ethereum Layer 2 Arbitrum Soars to $2B in Value Locked
Arbitrum has seen a sudden upswing in total value locked after launching on Aug. 31. Arbitrum Gains Momentum Following its launch on Aug. 31, Arbitrum has topped the charts for…
What is Impermanent Loss and How can you avoid it?
DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…
Ethereum Layer 2 Solution Boba Network Plans Airdrop
Boba Network, a new Layer 2 solution created by Enya in collaboration with OMG Network, is launching a token. Boba Network Rewards OMG Holders Boba Network will distribute a new…