A stronger drop could come for ETH if the $430 level is not sustained and the crucial technical pattern is not followed. ETH could undergo a stronger drop in the upcoming days ahead according to an analyst as the cryptocurrency dropped below the key support levels so let’s read more in today’s Ethereum news.
The crypto analyst shared a chart showing how the asset moved below the rising wedge pattern and shows that ETH is in a decent spot on the weekly time frame as many face an intraday pullback:
“$ETH $ETHUSD #Ethereum – 1W Confirmed breakdown from the Rising Wedge But as long as ETH remains above $433 by Weekly Close… ETH would still be technically well-positioned on the Weekly timeframe It would just be a matter of getting that follow-through post-retest of $433.”
Another point of concern is a large amount of ETH selling pressure on leading exchanges as the price tried to increase even higher. The number of analysts that shared charts over the recent days showed that there’s a huge sell wall that is limiting the potential price increase of Ethereum. A cell wall is the large block of sell orders which are situated around one single price level which in the end, prevents an asset from moving higher unless there’s a considerable amount of buying volume in the market.
There are charts that show that there are huge amounts of selling-side liquidity or short-taking propensity in the Ethereum December futures market on Huboi, a trader said:
“kinda agree, Im hedging some of my DeFi exposure iva ETH, huobi whales have thick asks on quarterlies too so upside on ETH should be limited.”
The long-term trend seems to be in favor of the bulls despite the weakness that could happen in the near-term. One trader shared a chart showing Bitcoin’s price action relative to the ETH price action over the past few years. The charts are mostly correlated as ETH and BTC started diverging in recent months as BTC took the attention of most investors in the space. BTC outpaced most altcoins during this move higher because of the strong fundamentals of the move. According to the fractal analysis, there’s a chance that ETH will surge by a few dozen percent in the weeks ahead so that is able to catch up with BTC.