Ethereum’s Ether (ETH) has faced a significant downturn, declining by over 7.50% this week amid a broader de-risking sentiment that is sweeping across the cryptocurrency market. The decline comes after ETH’s price broke below a critical symmetrical triangle pattern, indicating a potentially bearish shift in the short-term outlook. Technical analysis reveals that this breakdown could lead to an additional 15% drop, with the price targeting approximately $3,560 by early October if the current selling pressure continues.
Analyst Michaël van de Poppe discusses the implications of this decline, highlighting that ETH’s price could fall within the $3,550-$3,750 range. He points out that this target aligns with the 20-week exponential moving average, currently positioned around $3,685. Poppe notes that “compression is building up,” suggesting a significant price move could occur soon, and emphasizes that the current correction could present a favorable opportunity for accumulation, particularly given that ETH is now down nearly 20% from its recent highs.
Despite the bearish signals from the triangle breakdown, bulls have a crucial support level to defend. The price is currently hovering near an ascending trendline that has supported Ethereum’s uptrend since April, previously leading to rallies of 90% to 125%. A bounce from this trendline, accompanied by a decisive price close above the 50-day exponential moving average around $4,250, could signal a recovery toward the triangle’s upper trendline, potentially lifting ETH to the $4,600-$4,700 range.
In a more optimistic scenario, a rebound from the ascending trendline could pave the way for Ethereum to achieve new heights, with projections suggesting a target of $7,000. This outlook is bolstered by analysis using the Wyckoff Accumulation method, which indicates that Ethereum has completed necessary phases of consolidation earlier this year. These phases typically mark the transition from a bearish cycle to a sustained upward trend. According to this framework, the recent price drop is seen as a “Last Point of Support” (LPS), offering a healthy retest before the price is poised to rise again. If validated, this could set ETH on a trajectory for a breakout rally aimed at the $7,000 mark, implying a potential gain of at least 65% by the end of 2025.
As the market continues to respond to these developments, it is essential for investors to consider the inherent risks associated with trading and to conduct thorough research prior to making any investment decisions.
