Ethereum Price To $1400? Wedge Pattern Sets ETH Price For A Major Correction

Over the past two weeks, the Ethereum price has consolidated in a narrow range reflecting the lack of conviction from buyers and sellers. However, in the bigger picture, the coin price shows the formation of a famous bear continuation pattern a rising wedge. Under this development, the ETH price is currently under a bear cycle within the pattern which projects a longer correction phase in the near future.

Also Read: Ethereum Client Releases Major Upgrade To End PoW Support, ETH Price Jumps

Ethereum Price Daily Chart

• The Ethereum Fear and Greed Index at 47% accentuates a neutral sentiment among market traders
• A breakdown below $1700 support will signal the resumption of the prevailing downfall.
• The intraday trading volume in Ether is $6.4 Billion, indicating a 0.14% loss.

Source- Tradingview

During mid-April, Ethereum price turned down from the resistance trendline of the wedge pattern and initiated a new bear cycle. From the peak of $2138, this downfall tumbles the prices by 15.48% to reach the current price of $1798. 

However, with the growing indecisiveness in the crypto market, the ETH price hit a minor roadblock at $1740-$1714 support and turned sideways. Under the influence of the chart pattern, the overall setup favors a potential downfall, and therefore, the current consolidation could be a temporary detour.

Thus, if the bearish momentum is recuperated, a breakdown below $1714 support may drive the 18.5% down to hit the support trendline at $1400.

Anyhow, the coin holders can keep an overall bullish sentiment until the pattern’s lower trendline is intact.

Will Ethereum Price Poke $1400 Support?

If the ongoing consolidation phase in Ethereum price resulted in sellers’ favor with the breakdown of $1714, coin holders are likely to witness a longer correction to the $1400 mark. The potential downtrend could experience a major blockade at $1500 psychological support.

• Bollinger Band: A downtick in the upper band of the BB Indicator projects increasing selling momentum and an extra edge on short-selling opportunities.
• Relative Strength Index: The RSI slope plunge below the 60% barrier reflects additional confirmation of a downswing move.