Ethereum is having a good week, staying in the green zone of the crypto space for the past seven days and raising its price by 3.7%.
Ethereum is currently caught in an inverted pennant pattern
A resumption of the bearish trend is highly possible for the altcoin
$1,130 might be new support marker for Ethereum
The second largest cryptocurrency by market capitalization is currently trading at $1,324 according to Coingfecko at the time of this writing while its 24-hour trading volume stands at a little over $5 billion.
But the widely recognized king of all altcoins and its investors should consider staying on their toes as analysts believe that the asset is headed for a significant price correction and bearish momentum.
This development once again contradicts bullish expectations for the crypto after successfully undergoing network upgrade last month.
Ethereum And Its Bearish Price Pattern
The inverted pennant pattern is where the Ethereum price has been revolving for the past days, with the crypto in danger of being out into an accelerated bearish momentum.
Under this pattern, a triangle formation appears where the price peaks before breaking the bottom support trendline and resumes its prior downtrend.
In Ethereum’s case, such a scenario would mean breaking the $1,250 support level all the way to $1,130. If that happens, the altcoin could be looking at a price drop of up to 14.3%.
However, there is a possibility that the reverse would happen and Ethereum will shatter the support overhead trendline which will prevent the looming bearish run of Bitcoin’s nemesis.
Bad Time To Buy Ethereum?
The negative news just keeps coming for Ethereum as crypto tracking tool Coincodex concluded it is not a good time to invest in the altcoin right now.
Come October 16, the digital asset is expected to lose 7.12% of its value and trade at $1,237.79. Technical indicators are also looking bad for the crypto, as its current sentiment is bearish and volatility remains high.
As for its Fear and Greed Index, Ethereum gained a score of 22, which indicates there is extreme fear. Also, out of 30 days, the cryptocurrency only managed to have 12 green days, equivalent to 40%.
Meanwhile, next year appears to be more promising for the altcoin king, as it is projected to end the year with a trading price of $2,156.26 which is significantly higher than its current value.
On that account, experts are saying that 2023 is a good year to buy the asset.
ETH total market cap at $160.36 | Featured image from Local News Today, Chart: TradingView.com