Ethereum price predictions have become alarming with the recent formation known as the falling wedge. Following its 2023 peak, Ethereum (ETH) experienced a price decline, mirroring the recent trend in Bitcoin. This market shift has revealed a concerning technical formation on the ETH chart, known as the falling wedge. Crypto analyst Alan Santana sheds light on this formation and its potential impact on Ethereum’s future trajectory.
Ethereum Predictions: Falling Wedge Formation as a Bearish Signal
According to Santana’s analysis, the emergence of the falling wedge formation on the ETH chart is sounding alarms about the cryptocurrency’s price expectations. Santana notes that Ethereum previously formed a well-defined rising wedge, which eventually led to a downward trend.
This development indicates that Ethereum’s price is undergoing a “normal but rapid correction” in line with broader market trends.
Supportive Evidence from MACD and RSI Indicators
Santana uses technical indicators such as the Ethereum MACD and Relative Strength Index (RSI) to reinforce the bearish outlook. The daily chart’s MACD shows a clear downward trend, highlighting increased bearish pressure on the altcoin ETH.
Furthermore, Santana points to a clear downward trend in the RSI, which loses its support line and falls below the threshold of 50. These combined indicators suggest a shift towards a bearish trajectory for the altcoin Ethereum.
Warning Signs: Double Top Formation and Declining Volume
Santana highlights additional warning signs for the cryptocurrency Ethereum, drawing attention to a double top formation and decreasing trading volume. The analyst describes the gradual decline in volume as the calm before the storm.
As the altcoin Ethereum navigates the complexities of market dynamics, the emergence of a falling wedge formation alongside bearish indicators points to a challenging road ahead. The warnings from Santana’s analysis underscore the importance of caution when monitoring Ethereum’s price movements as the cryptocurrency market continues to evolve.
Looking at the Ethereum price, the leading altcoin ETH is trading at $2,165 at the time of writing. The ETH price has remained stable in the last 24-hour period.
