Ethereum price has been showing weakness compared to Bitcoin for the past few months. While the ETH to USD pair might seem to follow the Bitcoin price action, the ETH/BTC pair remains in a constant downtrend. This shows that there is more demand for Bitcoin than the native asset of the biggest smart contract blockchain.
ETH price is down 1.08% on Thursday as most altcoins failed to catch bids. Therefore, the sellers had to go down the order book to dump their coins. This resulted in the altcoin market cap falling 0.49%. ETH changes hands at $1547 at press time, 5.7% below its weekly high.
ETH/BTC pair reveals the true market sentiment as it shows the direction of the money flow. If you have read my previous analysis of the pair, then you must know that I’ve been predicting a retest of the 0.05 level for quite a while. This price forecast seems to be materializing after the recent breakdown below the falling wedge pattern.
The 0.05 level on the following chart might provide a great longterm entry and I expect the Ethereum price to have a strong rebound from this level. There is a high likelihood for this level to be tapped before the end of this year. However, a breakdown below the 0.05 level might mean new 52-week lows for the ETH price in USD.
Ethereum Price Outlook
To understand the price action of the ETH/USD chart, let’s analyze it on a daily timeframe. We can identify different patterns on the following chart. Firstly, there is a symmetrical triangle pattern that has been formed after the March and April pivots. Secondly, there is the $1577 to $1750 trading range.
After a breakdown below both of these patterns, Ethereum price prediction is looking very bearish. A failure to reclaim the range lows may result in a very deep correction with the first bearish target being $1369. The technical bearish target of this breakdown is $832.
