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Crypto analyst Trend Diva has provided an in-depth analysis of the current Ethereum price action. She revealed that $ETH is still moving inside an ascending triangle but warned that it could suffer further downside pressure if it fails to stay above a crucial support level.
Ethereum Price Still Inside An Ascending Triangle Despite Recent Crash
In a TradingView post, Trend Diva revealed that the Ethereum price is moving inside a clear ascending triangle. The upper boundary acts as long-term resistance, and the lower boundary provides dynamic support. This analysis comes amid $ETH’s recent decline below $2,000.
The analyst noted that after a steady climb, the Ethereum price started showing weakness, confirmed by a head and shoulders pattern, which she claimed is a common sign that the trend might reverse. This weakness led to a strong drop for $ETH, bringing its price down to the key support zone around $2,000.
Trend Diva stated that this support area is important for the Ethereum price because it meets with a major trendline, making it a likely spot where buyers could step in. She added that the volume profile also shows a lot of activity in this zone, meaning traders have been interested in these levels before.
The analyst further remarked that if the Ethereum price holds above this $2,000 support, it could bounce towards the $2,800 level, which represents a previous resistance. However, she revealed that a breakdown below the trendline shifts the bias bearish towards $1,414.
For now, as long as $ETH stays above $2,000, a rebound to $2,800 is still on the horizon.
It is worth mentioning that the Ethereum price briefly lost the $2,000 support level following a crypto market crash on Sunday. As such, there is also the possibility that it could drop to as low as $1,414 as Trend Diva warned.
A Drop To As Low As $1,250 Is Also On The Cards
In an X post, crypto analyst Ali Martinez said the Ethereum price seems to be breaking out of a parallel channel. He added that $ETH could drop to as low as $1,250 if momentum sustains. $ETH whales look to be doing everything possible to defend the $2,000 support zone and prevent Ethereum from dropping to these new lows.
Martinez revealed that the largest whales on the network have bought 330,000 $ETH in the last 48 hours. This massive whale accumulation could help prevent further downside pressure and possibly spark a bullish reversal for the Ethereum price.
At the time of writing, the Ethereum price is trading at around $2,065, down over 5% in the last 24 hours, according to data from CoinMarketCap.