The Ethereum testnet Ropsten successfully integrated the merger to become proof of stake, but that didn’t stop traders from adjusting their price targets lower.
On June 8, the Ethereum network successfully passed the merger to become proof of stake on its Ropsten testnet, but the news had little effect on the price of ETH.
With the Ropsten update now more like a buy the rumor, sell the news event, most analysts remain short-term bearish on the Ether price. Let’s take a look.
ETH/USDT 1-day chart. Source: Trading View
Can Ether Escape the Head and Shoulders Pattern?
A Twitter analyst going by the pseudonym “Cactus” pointed to a bearish head and shoulders pattern and wondered if the price of Ether would be able to follow the strong downtrend that usually follows the pattern’s completion.
Weekly ETH/USD chart. Source: Twitter
cactus said
“Is this what we are looking forward to? It’s hard to be optimistic on any timeframe until we change S/R [support/resistance] to 2K.”
Areas of support below $1,800 have been highlighted in the chart below, posted by a crypto analyst and Twitter user under the pseudonym “il Capo of Crypto,” who ominously remarked, “Lower highs and all along this support has been hit hard before.”
ETH/USD on a 1-day chart. Source: Twitter
The analyst said
“Net breakout of $1,700 and last stage down to be confirmed with primary target = $1,000.”
The descending triangle pattern also predicts a further decline.
A separate but equally bearish descending triangle pattern was highlighted by an analyst under the pseudonym “Crypto Tony” who wondered if it was “something too obvious” to ignore.
ETH/USD on a 1-day chart. Source: Twitter
Based on the lower support area highlighted in the chart provided by Crypto Tony, a drop below the current price could see Ether pull back towards the $1450-$1600 range.
Related: Ethereum ‘Double Doji’ pattern suggests 50% ETH price rally during September
Price dynamics turn negative
A macro view of Ethereum’s general weakness was offered by cryptocurrency trader alias Cantering Clark, who said, “If I didn’t think things were a little different this time around, I’d be looking at this $ETH chart and thinking ‘Big’. one.’ Ships turn slowly and don’t stop easily.”
Weekly ETH/USD chart. Source: Twitter
Cantering Clark said:
“Because of the action over a longer timeframe, this could be the start of an actual recession.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
