While Ethereum price continues to falter, a steeper drop for the largest altcoin lurks around the corner. According to Bit Bull, the ETH decline will see it sink to lows of $1,600 in the near future.
Ethereum Price Hurtles Toward $1,600
Cryptocurrency analyst Bit Bull has shared a prediction on X for Ethereum price movement in the near-term. According to Bit Bull, Ethereum looks set to continue its decline and can fall as low as $1,600.
Bit Bull hinges his prediction on Ethereum breaking down from a symmetrical triangle after prices fell below $1,820. The decline below the triangle pattern signals a bearish sentiment, continuing the previous decline. ETH price remains stuck below $2,000 since the drop below the psychological level was driven by a raft of unsavory fundaments and technicals.
The latest is the Ethereum price dropping beneath the triangle pattern, triggering new short entries on the asset. A breakdown and a retest followed by low trading volumes confirm fears of a steeper ETH correction.
“However, after the breakdown and a retest, ETH is now looking bearish,” said Bit Bull. “Technically, there’s a strong possibility for further downside.”
Apart from the symmetrical triangle, a further confirmation of bearish sentiments is seen in ETH dominance. According to his analysis, Bit Bull notes the ETH dominance chart has formed a descending triangle to signal further bearishness.
“A retest toward the upper trendline is likely, but after that, we could see another move down,” added Bit Bull.
On-chain Metrics Confirm Bearish Sentiments For ETH
While technicals are largely pessimistic, on-chain data are telling a similar story for Ethereum price. Right out of the bat, active addresses on Ethereum have taken a major hit in recent months, exacerbating the issue of falling prices.
There is also a decline in Ethereum fees burnt while fees burnt per transaction face a similar slump. Perhaps the biggest indicator for long-term bearishness is an increase in ETH supply after the Merge event.
Despite the negative sentiments, ETH to $4,000 is still in play given the show of as strong support at $1,800. Standard Chartered analyst opines that Ethereum will finish the year at $4,000 after slashing its earlier prediction of $10,000 by 60%.
Ethereum price currently exchanges hands at $1,803, falling by less than 1% over the last day. Weekly charts indicate a similar ETH decline of around 1%, confirming a strong consolidation base for the bruised and battered altcoin. Ethereum’s trading volume stands at nearly $7 billion with whales creating a chunk of market activity for the asset.
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