Ethereum price nosedived by more than 10% in the overnight session after a broad sell-off in cryptocurrency prices. The ETH price has dropped by more than 4% while Bitcoin, Cardano, Ripple, Litecoin, and Polkadot have fallen by more than 5% in the past 24 hours. This brings its total market cap to more than $200 billion.
Ethereum News: ETH suffered a harsh reversal after the price soared to an all-time high of $1,874 on Saturday. Similarly, Bitcoin rose to its all-time high of $49,700 after BNY Mellon, one of the biggest banks in the US started offering crypto custodial services.
Therefore, since there was no major news, the current weakness is mostly because of profit-taking. Furthermore, ETH price has already risen by more than 1,000% from its lowest level in 2020. So, what next for the Ethereum price?
ETH price technical outlook
In an article earlier today, an analyst said that the Ethereum price was on track to decline by more than 35% to $1,040. He focused on the four-hour chart, which has developed a rising wedge pattern. However, this thesis seems to be premature since the chart he used showed that the wedge was not close to its tipping point.
Now, turning to the daily chart, we see that the ETH price fell to an intraday low of $1,661. This level was not by accident. In fact, it was along the ascending pink trendline that connects the lowest levels since January. In fact, the price has formed an ascending channel. Therefore, in the near term, there is a possibility that it will bounce back to $1,950, which is along the upper side of the channel. This is in line with my earlier prediction that ETH will soon rise to $2,000.
ETH price chart