Technical analysis from the weekly timeframe shows that Ethereum (ETH) price has been increasing since May 2022. During this time, it has created two higher Dip , accelerating the rate of increase after each Dip.
During this time, ETH price moved along an ascending resistance line. Most recently, the trend line was validated two weeks ago when ETH hit a yearly high of $2,400.
Popular analyst Peter Brandt is bearish on Ethereum:
“Classic patterns in price charts are not sacred – they always don't work according to the textbook. However, if the rising wedge in Ethereum follows the script, the target is $1,000, then $650. I Short ETH on Friday — I put a stop loss at B/E to protect.”
The wedge's resistance line is the same as the one outlined above. The resistance level is important as it coincides with the 0.382 Fib retracement level and the $2,420 horizontal resistance area. Therefore, whether the price can win this zone or not will be the factor that determines the future trend.
The ascending wedge's support line is at $1,720.
The daily timeframe shows bearish momentum driven by price action and RSI, supporting Peter Brandt's bearish analysis.
If the downtrend continues, ETH price could drop 10% to the nearest support level at $1,960. This will only be accomplished with a break below the 0.786 Fib and the $1,710 horizontal support, which is 22% below the current price.
Despite this bearish forecast, reclaiming the ascending support line would neutralize the short-term breakout and result in a 12% rally to the yearly high.
A weekly close above the yearly high at $2,400 is needed to neutralize the long-term bearish pattern. ETH could then rally 65% to the next long-term resistance at $3,600.
