October 31, 2023
In the past two weeks, the Ethereum price has experienced a significant surge, reclaiming crucial resistance levels at $1,600 and $1,700. However, the asset is now facing headwinds as Bitcoin struggles to break past the $35,000 mark, leading to increased selling pressure across the crypto market. This has caused the ETH recovery to stall around the $1,800 level, raising concerns about a potential correction.
The Ethereum coin price has been following a falling wedge pattern over the past seven months. This pattern has influenced market participants, with the price rebounding three times from each downsloping trendline. The recent recovery stalled near the pattern's upper trendline, indicating strong selling pressure. Long-wick projections at this resistance level suggest that sellers are pressuring the asset for another downward correction.
If the Ethereum price breaks below the $1,760 mark, it could trigger increased selling and potentially drive the asset back down to the lower trendline near $1,500. This downside risk should be considered by investors.
Despite the current concerns, the prevailing bullish sentiment has not been entirely extinguished. If the ETH price can maintain a price above $1,750, there might be an opportunity for buyers to break out from the falling wedge pattern's upper trendline. Such a breakout would signal the end of the ongoing correction phase and could lead to an extended recovery with a target at $2,030, representing an estimated upside of 14%.
In conclusion, while the Ethereum price has experienced a significant surge, the presence of overhead supply and the potential for a correction should be taken into account. Investors should closely monitor the price action and consider the possibility of a downside risk. However, if the price can maintain its current level and break out from the falling wedge pattern, there is a chance for a bullish recovery towards the $2,000 mark.
Ethan Lim, a native of the Lion City, is Singapore’s rising star in the domain of online casino guide localization. He masterfully blends his intimate knowledge of local culture with international gaming standards to produce content that resonates deeply with Singaporeans.