Ethereum’s native token Ether (ETH) faces the possibility of a 35% price correction in Q2 as it comes closer to breaking below its “ascending triangle” pattern.
ETH price breakdown ahead?
Ether’s price swung between profits and losses on May 2 while trading around $2,825, showing indecisiveness among traders about their next bias.
Interestingly, the Ethereum token wobbled in the proximity of a rising trendline that constitutes an ascending triangle pattern in conjugation with a horizontal line resistance.
To recap, ascending triangles are typically continuation patterns. That being said, Ether’s price was trending lower before forming its ascending triangle, raising its chances of a breakdown in the next few weeks.
Another bearish sign comes from Ether’s fake out move more than a month ago.
Notably, Ether broke above its ascending triangle on March 28 only to return to its range a week later — a fake breakout. Flipping the triangle’s top to resistance, followed by a period of consistent selling, indicates strengthening bearish momentum, now nearing a breakdown moment.
As a rule, breaking below the Triangle’s lower trendline puts the downside target at a length equal to the triangle’s maximum height, or the area between $1,820 (-35%) and around $2,160 (-30%), depending on the breakout point.
Institutional ETH outflows
Meanwhile, accredited investors have been withdrawing money out of Ethereum-based investment products in 2022, according to the latest CoinShares report.