In addition to the downtrend in crypto prices, the crypto bear market is characterized by many other factors, including the lack of investor confidence in the market, a continuous period of falling prices, lower highs when good news arrives, and low lows when bad news arrives.
The ascending triangle promises a significant recovery in the Ethereum price in 2022.
Ethereum native token, Ether (ETH), continues to take risks in higher interest rates. But one analyst is of the opinion that further sales movement of the token may be a shock, because market factors at the eventual release of Merge this August.
The price of ether could reach $ 4,000 by the end of 2022, according to a technical setting shared by Wolf, an independent market analyst on May 20.
The analyst suggests that ETH operates within an upward triangular pattern of several months, which consists of horizontal trend resistance and rising trend support.
In particular, the latest test of the low trendline structure from ETH could trigger a large reflection on the high trend line, which is around the level of USD4,000, as shown below.
Wolf took his strong pattern from a similar triangular setting in 2016, the formation of which led to a big bubble run from $1 to $27. Similarly, another rise in the 2017, triangle coincided with a strong follow-up, in which ETH / USD 270% rose to more than $1,500.
Wolf’s fractal-based analysis came when Preston Van Loon, one of Ethereum core developers, confirmed that the expected upgrade of the blockchain project to a proof-of-stakeholder consensus mechanism would take place sometime in August.
Wolf noted that Ethereum had forming a “bear trap” that was reasonable for the upgrade, and appreciated its technical setup, as mentioned above.
The bearish pattern of the head and shoulders forces Ethereum traders to adjust their price targets
According to other traders say Ethereum needs a monthly close sheet above $ 2,250 to regain strong bullish momentum, but a bearish technical analysis model in the weekly time frame threatens to push the price up (ETH) to new low first.
Crypto markets remain volatile, and some traders believe the bearish trend will continue as stock markets chase new lows.
Most investors agree that cryptocurrencies are now on the bear market, and the current price action for bitcoins (BTC) and Ethereum (ETH) suggests that capitulation and consolidation are still a long way off.
Data from TradingView shows that Ether is still trying to claim the support level of $ 2,000 and this zone has been a huge support and resistance since February 2021.
ETH need to close above $2250 on monthly candle
Rekt Capital said,
“ETH is climbing closer and closer towards the key ~$2,250 level. The main question is whether that monthly level will flip into new resistance once reached.”
Traders target down to $1,650
Crypto Tony said,
“This move will be needed to engineer liquidity to propel us into the corrective wave. From there we see how it goes.”