Recent Ethereum price predictions are causing alarm due to a new chart formation known as the “falling wedge,” which is typically seen as a bearish indicator. This technical formation appeared following Ethereum’s peak in 2023, with a subsequent price drop that mirrored Bitcoin‘s recent trend. Crypto analyst Alan Santana sheds light on this pattern and its potential impact on Ethereum’s future trajectory.
According to Santana’s analysis, the emergence of the falling wedge formation on the ETH chart signals a warning for the cryptocurrency‘s price expectations. He notes that Ethereum had previously formed a well-defined rising wedge, which ultimately led to a downward trend.
These developments suggest that Ethereum is undergoing a “normal but rapid correction” in line with broader market trends. Santana uses technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) to reinforce the bearish outlook.
The daily chart’s MACD highlights an increasing bearish pressure on ETH, while the RSI indicates a clear downward trend, breaking below the support line and falling under the 50 threshold. These indicators collectively point to a bearish shift for Ethereum.
Santana also points out additional warning signs for Ethereum, including a double top formation and decreasing trading volume, which he describes as the calm before the storm. Amidst complex market dynamics, the appearance of a falling wedge pattern, combined with these bearish indicators, signals a challenging road ahead for Ethereum. Santana’s warnings emphasize the need for caution when monitoring Ethereum’s price movements as the crypto market continues to evolve. Currently, Ethereum is trading at $2,165, with no significant change in price over the last 24 hours.