ETH Price At Decisive Critical Point, 30% Sell-Off On The Offing?

John Isige
August 29, 2023 Updated June 17, 2025
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
ETH price

Ethereum, like its top ten peers, is struggling with charting its way out of the August sell-off that saw ETH price plunge to $1,580. The second-largest crypto holds above slightly higher support at $1,630 following a failed recovery attempt above $1,700 last week.

Up a mere 0.2% on Tuesday, Ether trades at $1,646 amid a building bearish trend, with the possibility of validating an extended downtrend to $1,140, considering the presence of a descending triangle pattern.

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ETH Price Sits At Breakout Zone

Ethereum has generally sustained a downtrend since the last bull run to $4,878 in November 2021. Within this crypto winter, there have been moments when ETH price has pushed to reverse the trend like the rally in January and April 2023. The latter hit $2,125 as investors embraced the Shapella upgrade, which marked the completion of the transition to a proof-of-stake mechanism.

Although bulls gathered rallied behind ETH in June, resulting in an upswing to $2,000, a lack of momentum saw the smart contracts token trim gains back to support between $1,600 and$1,630.

The technical picture on the daily chart presents a disquieting situation, where ETH price could tumble 30% below the breakout point at $1,630 to $1,140.

ETH price
ETH/USD daily chart | Tradingview

A descending triangle pattern as seen on the daily chart could further jeopardize Ethereum’s recovery, paving the way for the downtrend to stretch to $1,140 before ETH price aligns with the expected uptrend into the bull market.

Traders must, however, wait for the pattern’s confirmation before going all-in with their short positions in ETH. It would be prudent to trigger the sell orders once the support at the triangle’s x-axis around $1,630 breaks.

Profit booking may start as Ethereum drops through potential support areas at $1,400 and $1,200. However, the triangle pattern projects a 30% drop from the axis to $1,140 which represents the height of the pattern extrapolated below the breakout point.

An incoming death cross on the same daily chart could complicate the situation further for bulls, holding Ether from starting the move to $2,000 and focusing on sweeping the floor for liquidity at the $1,140 support.

A death cross forms with a short-term moving average like the 50-day EMA (red) in Ethereum’s case flipping below a longer-term moving average such as the 200-day EMA (blue).

The path with the least resistance will most likely remain downward due to the death cross as well as the prevailing ETH price position below all three moving averages, including the 100-day EMA.

Despite the bearish outlook, markets are not set in stone and an opposite reaction to support at $1,630 could disregard the triangle pattern breakout and allow for an immediate rebound above $1,700 while bringing the coveted $2,000 level within reach.

That said, it is essential to trade carefully keeping in mind a possible buy signal from the Moving Average Convergence Divergence (MACD) indicator. If the MACD line in blue completes the flip above the signal line in red, ETH price could soon be on the recovery path eyeing $2,000.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.