Ethereum’s price follows 3 patterns that are risky, resulting in a crash of 20%

Ethereum’s price continues to be in a downward trend, with three chart patterns that suggest a possible 20% drop.

EthereumETHThe second-largest coin of crypto () fell by 35% to $2,670 Monday. It was at its highest in December.

The blockchain industry was a fiercely competitive place. This competition is mainly coming from popular layer-1 network like Berachain.BERA), Solana (SOLBNB Smart ChainBNB). 

Ethereum has also lost market share due to the popularity of layer-2 blockchains such as Base and Arbitrum. These are popularized because they have lower costs. In the past 30 days, DEX protocols running on Ethereum have handled volumes worth $81 billion, while Base has only managed volume of $81 billion.BASEArbitrum (ARBBoth companies processed 35 billion dollars and 28 billion dollars, respectively.

Third-party data This shows that Ethereum ETFs do not attract as many inflows than was anticipated. In the two last market days they experienced an outflow that brought their cumulative total up to $3.15B. Bitcoin ETFs on the other had almost 40 billion dollars in new inflows.

Ethereum’s trading volume daily has continued to fall, dropping from a high of 330 billion dollars in December, and now stands at $126 billion. The revenue of the company has continued to fall, falling from $58 million last November, down to $5 million Sunday. 

Ethereum’s futures opened interest is down from 2024 levels. There is a $23.3-billion interest, which is down from the $35-billion high reached this month.

Ethereum prices are indicating further declines

On the daily chart, Ethereum’s value is at greater risk. The 50-day Moving Average and the 200-day moving average crossed on 9 February, forming a death-cross.

It has also formed an ascending wedge pattern. This happens when two converging ascending trendlines are present. A triangle, as well as a horizontal line, has been formed into a pattern called a “bearish pennant”. 

The next target level is $2,166, the lowest price this month. If the price breaks below this level, it could lead to further downside to $2,000 or even lower.