ETH price could be forming a trend reversal pattern that, if confirmed, could catalyze major downside

By Selena On Jun 5, 2020

After Bitcoin failed to conquer the high above $ 10,500, the price of ETH and the rest of the cryptocurrency market are showing some signs of weakness. However, the decline after this happening is not so intense, and buyers can counteract this comprehensive trend reversal.

This current strength may not be enough to catalyze any strong uptrend for ETH price

Some analysts believe that the ETH price chart A potential reversal trend formation has occurred. This pattern has yet to be confirmed, but any further near-term downside could validate it and cause Ethereum to erase many of its recent gains.

Currently, the price of the ETH is fluctuating slightly around $ 244. While the ability to climb back to this level is a positive sign, analysts also note that it is currently stuck in a bearish pattern.

One analyst said that when looking at the 4-hour chart of Bitcoin, the market’s leading cryptocurrency could be caught within a broadening wedge.

He stated:

“ETH / USD H4 TF- Ethereum, we could potentially see a Broadening Formation pattern play out here.”

Image Courtesy of Escobar

However, the trend of reversal can still occur. Crypto analyst Josh Olszewicz explained that although he did not expect this to happen, it is likely that he is observing.

He stated:

“4h ETH … not expecting a bearish reversal but def watching this closely,” he said while pointing to the chart seen below. ”

4h $ETH

not expecting a bearish reversal but def watching this closely pic.twitter.com/pbuvlFvlxb

— Josh Olszewicz (@CarpeNoctom) June 4, 2020

If BTC drops from the current price of $ 9,800, that could cause ETH price to invalidate its newly established uptrend and cause some significant losses.

ETH is forecast to rise to a minimum of $ 500

Ethereum not only checks the price horizontally but also the downtrend from the peak of June 2019.

According to Dan Tapiero, co-founder of 10T Holdings and DTAP Capital, breaking that level paves the way for Ethereum to reach $ 500 or more between six months and a year.

Chart of Ethereum on verge of explosive upmove.

Are there any upcoming potential catalysts?

Move up through 300 projects to 500 minimum in coming 6-12 months.

Any strong views out there? pic.twitter.com/xLV9wt5CVD

— Dan Tapiero (@DTAPCAP) June 4, 2020

Moreover, we can consider the following factors. The first is the upcoming ETH 2.0 launch. Long positions on margin trading platforms have reached insane numbers ahead of the event many expect to cause a major Ethereum rally. Second, Grayscale clients are paying a nearly 800% premium for ETHE, the company’s institutionalized version of the altcoin that is broken down into shares of approximately 0.09402547 ETH per share.

Here is a look at YTD performance of $ETH vs $ETHE (Grayscale Ethereum Trust)$ETHE is currently trading at a ~800%+ premium relative to NAV (net asset value)

Is this what F.O.M.O looks like? pic.twitter.com/OauFJfAOlW

— RookieX₿T (@RookieXBT) June 3, 2020

Finally, interest in DeFi – one of Ethereum’s best applications – has continued to rise sharply since the end of last year.

All of these factors and more may play the catalyst that Tapiero is looking for.

While Etheruem is resisting such strong resistance, the bulls are a bit too overconfident and trigger a high-precision sell signal, the explosive move may point to the downside first so that there is sufficient momentum to last. violated over 300 dollars.

ETH price chart

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