Ethereum Price Prediction: Descending Wedge Pattern Points to a Potential Drop Towards $1,200
CryptoNewsTerminal Staff10 Sep, 2024
Ethereum Price Prediction: Descending Wedge Pattern Points to a Potential Drop Towards $1,200
Benjamin Cowen, Founder of IntoTheCryptoverse, has identified a "similar type of descending wedge pattern forming on the ETH/USD Kraken weekly chart to what we saw in 2019." Cowen suggests that this pattern "opens the door to the possibility of ETH seeing a drop towards $1,200." The descending wedge pattern is a bearish pattern that indicates a potential reversal of an uptrend. Cowen's analysis suggests that Ethereum (ETH) may be due for a correction after its recent rally. In 2019, ETH also wicked below the pattern prior to the first Fed rate cut and then dropped even further after the rate cut. Fast forward to 2024, we have a new wedge forming at a higher low compared to 2019. Current cycle lows sit at $886, $1,069, $1,515, and we recently wicked below $1,954. With the September FOMC rate cut seemingly priced in, there's a higher probability that Ethereum revisits the bottom side of the wedge... I think that by December, we will have put in a new bottom somewhere around the $1,200 area." It's important to note that Cowen's analysis is not a guarantee of future price movements. However, it does provide a potential scenario for ETH investors to consider.
