Ethereum is stuck in the “Ascending Triangle” Pattern: What Lies Ahead?

Ethereum

EthereumAs Q2 comes to an end, the $1K price support for Ethereum is in jeopardy.

On the final trading day of Q2/2022, Ether (ETH), the native token of Ethereum, declined while trading in tandem with riskier assets due to lingering concerns about increasing inflation and rising interest rates. And that might lead to additional decreases going into Q3.

 

ETH price breakdown underway

Following a four-day losing streak, the price of ETH fell roughly 5% on June 30 to $1,044. The ETH/USD pair has also fallen below its temporary rising trendline support, forming an “ascending triangle” signal when combined with a horizontal trendline resistance to the upside. When they develop following a steep downtrend, ascending triangles are bearish continuation patterns. Therefore, a collapse out of an ascending triangle usually causes the price to decline even more, usually by as much as the maximum height of the structure. Since June 13, Ether had been moving inside of an ascending triangle. On June 29, it broke below the triangle’s bottom trendline, confirming traders’ belief that the decline would continue. As a result, the ascending triangle setup’s downside goal for ETH in Q3 is close to $835, or nearly 20% less than the price on June 3.

 

Exchange reserves are rising

An increase in the quantity of ETH available on exchanges is another factor supporting the bearish technical outlook. Notably, investors have invested about 1 million Ether tokens on all cryptocurrency trading platforms. Rising ETH balances in exchange wallets signify increased selling pressure on the Ether market. According to CoinShares’ weekly report, institutional investors have also been reducing their exposure to Ether by taking money out of special investment funds. $136.9 million was taken out of Ethereum-focused investment products in June. They have processed almost $450 million in withdrawals so far in 2022, demonstrating the extreme pessimism of traditional investors about ETH.

 

ETH sharks and whales buy the dip

On the plus side, some of Ether’s wealthiest investors have had the chance to “buy the dip” as a result of the decrease in its pricing throughout June. Ethereum shark and whale addresses (carrying between 100 and 100K $ETH) have collectively added 1.1 percent more of the coin’s supply to their bags on this -39 percent decline [from June 7].” Smaller investors have been exhibiting a similar dip-buying mood as well, as evidenced by a constant rise in addresses holding at least 0.1, 1, and 10 ETH since the year’s conclusion, according to data from Coinglass. The price of ether has decreased by about 75% so far this year. The author’s thoughts and opinions alone, not necessarily those of Cointelegraph.com, are conveyed in this article. Every investment and trading action carries risk, therefore before making a choice, you should do your study.