Ethereum Price Forms Another Risky Pattern

Ethereum remains in a bear market, after falling more than 53 percent from its high of November.

EthereumETHIt has dropped below the critical support level of $2,000, and is nearing its lowest point since Nov. 6.

Wall Street’s demand for coin was waning at the time of this crash. Spot Ethereum ETFs have had outflows The cumulative net inflows for the past three weeks totaled $2.52 Billion. The total assets are now at about $6.72 Billion. 

Ethereum’s drop has been fuelled by the growing fears in crypto markets. The widely watched cryptocurrency fear and greed indicator has now dropped into the 21-point fear zone. Bitcoin (BTC) and other altcoins tend to underperform when investor sentiment is weak.

Recent ETH tokens sales by Ethereum Foundation did not help. Harikrishnan Mulackal warned last week that Ethereum was in danger. future was at risk without clear leadership. 

The Ethereum network continues to be challenged by other layer-1 chain like Solana.SOL( ) and BSC Chain. DeFi Llama stated that DEX protocols for Ethereum had a token volume of $1.012 Billion on Monday. That was less than BSC ($1.63 Billion) and Solana ($1.077 Billion).

Ethereum has shown another pattern of risk.

This current ETH crash occurred after a pattern of triple tops appeared on the weekly chart. This pattern features three peaks as well as a neckline. In this case it was $2,126. 

Ethereum, too, formed a death-cross on the chart daily when the 50-day- and 200-day-moving averages intersected on February 13th. The death cross pattern is one of the most risky patterns used in technical analysis.

Now, ETH is slowly forming another bearish pattern — a pennant. The formation is a vertical line, followed by a triangle. A bearish collapse could occur soon as the triangle nears its point of confluence.

If the price drops below the low for the first half of the year of $1757 then it could be a sign of further falls to the psychological level $1500.

The Federal Reserve’s interest rate announcement on Wednesday could be a catalyst for Ethereum to rise in price. Fed dovishness could help ETH as well other cryptocurrencies.