According to analyst nicknamed Wolf, ETH is drawing a bearish “symmetrical triangle” while Ethereum risks falling below $2,000. The downside is emerging as the billionaire addresses of the leading altcoin Ethereum continue to accumulate the supply of ETH.
Fall alert for popular altcoin Ethereum
According to the analyst, Ethereum’s native token Ether (ETH) will likely fall below $2,000. According to Wolf, Ether charts a classic bearish continuation setup. Wolf shared the bearish view on March 7 as the price of Ether rallied over 3% to around $2,650 a day after testing the upward sloping trendline near $2,500. Central to Wolf’s analogy was the “symmetrical triangle,” a classic technical analysis pattern that is formed when price fluctuates between two converging trend lines.
Ether has been bouncing in a symmetrical triangle pattern since the beginning of this year. ETH has dropped more than 50% after hitting above $4,850 in November 2021. As a result of the “continue” rule, ETH’s triangle pattern seems to be trending towards the bears. In other words, price can fall by the maximum distance between the upper and lower trendline of the triangle after exiting the pattern.
Is below $2000 close for ETH?
As a result, Ether’s decisive move below the Triangle support could test levels below $2,000 as the next downside target. “Bulls will try to defend the diagonal for a long time, bears will try to push the price to $1.8k-1.9k,” Wolf said. Wolf’s bearish outlook for Ether came despite the recent surge in ETH’s accumulation by its wealthiest investors. Ethereum addresses holding between 1 million and 10 million ETH have accumulated 2.2% of the total ETH supply minted in the last six months. Also, the buying spree coincided with ETH’s price correction, suggesting they bought the dip.
How is the situation with the individual investor?
According to data from Glassnode, retail traders also entered the Ethereum market during the last Ether price correction. For example, the number of Ethereum addresses holding at least 0.1 ETH hit an all-time high of 6.972 million on March 7. Similarly, addresses with a minimum balance of 0.01 ETH rose to a record high of 21.8 million. However, many analysts remain optimistic about Ether, citing the move from Proof of Work to Proof of Stake this year. For example, GlobalBlock market analyst Marcus Sotiriou stated that the upgrade will have a “positive impact” on the price of Ether in the long run. “This is because it should significantly reduce the cost of transactions on the Ethereum network, which is currently the main disadvantage of Ethereum,” the analyst said.