Ethereum has had a good week, staying in the green of the crypto space for the past seven days and raising its price by 3.7%.
- Ethereum is currently being detected in an inverted banner pattern
- The bearish trend of the altcoin is very likely to resume
- $1130 Might Be a New Sign of Support for Ethereum
sicosecond abbreviation The largest cryptocurrency by market cap is currently trading at $1,324 according to Coingfecko At the time of writing, the 24-hour trading volume was just over $5 billion.
But the widely recognized king of all cryptocurrencies and their investors should consider staying alert as analysts believe the asset is headed for a major price correction and downside momentum.
This development again contrasts with bullish expectations for cryptocurrencies after successfully undergoing a network upgrade last month.
Ethereum and its bearish price pattern
The inverted pennant pattern is where the price of Ethereum has been circulating over the past days, with the risk of the cryptocurrency entering an accelerated bearish momentum.
Under this pattern, a triangle formation appears as the price peaks before breaking the bottom support trend line and resuming its previous downtrend.
In the case of Ethereum, such a scenario could mean a break of the $1250 support level all the way to $1130. If that happens, the altcoin could be looking at a price drop of up to 14.3%.
However, there is a possibility that the opposite will happen and Ethereum will break the upper trend line of the support which will prevent the looming downward path of the enemy of Bitcoin.
Is it time to buy Ethereum?
Negative news keeps coming to Ethereum as a crypto-tracking tool Coincodex He concluded that it is not the right time to invest in cryptocurrency right now.
On October 16, the digital asset is expected to lose 7.12% of its value and is trading at $1,237.79. Technical indicators also look bad for the cryptocurrency, as the current sentiment is bearish and volatility remains high.
As for the Fear and Greed Index, Ethereum has a score of 22, which indicates the presence of intense fear. Also, out of the 30 days, the cryptocurrency only managed to get 12 green days, which is 40%.
Meanwhile, the upcoming year appears to be more promising for the altcoin king, as the year is expected to end at a trading price of $2,156.26 which is well above its current value.
On this account, experts say 2023 is a good year to buy the asset.
ETH total market cap at $160.36 | Featured image from Local News Today, Chart: TradingView.com