Ether Price Faces Potential Drop Amid Bearish Patterns
Market analysts suggest that Ether (ETH) could see its price fall to $1,000 if a bearish chart pattern breakdown is confirmed. According to Cointelegraph, the bear flag pattern for Ether targets a 50% price drop to $1,075. The cryptocurrency risks over $1.70 billion in long liquidations if its price falls below $2,000. Additionally, whale accumulation appears to be weakening as major ETH holders reduce their exposure.
Ether's downtrend may accelerate if the price breaks below the lower trend line of a bear flag at $2,000 on the daily chart. A similar breakdown in January resulted in a 41.5% drop in ETH's price. The bear flag pattern, a bearish continuation setup, forms after the price consolidates inside an up-sloping channel following a sharp decline. The measured target of the flag, derived from the previous downtrend’s height added to the breakdown point at $2,000, is $1,075, representing a 49% decrease from the current price.
Analyst Coin Signals noted that Ether is on the verge of breaking the bear flag pattern, warning that if the price fails to hold above the lower trend line at $2,000, a sell-off to $1,800 or a new low could ensue. Fellow analyst Keith Alan advised followers to prepare for a potential "nasty scenario," involving the confirmation of a death cross between the 21-day simple moving average (SMA) and the 50-day SMA, alongside the validation of a bear flag in the daily timeframe. Alan highlighted that momentum indicators show deterioration on both daily and weekly RSI timeframes, and failure to establish support could lead to progressively lower technical support levels toward the bear flag's measured target around $1,300.
Meanwhile, analyst Crypto Patel pointed out that ETH's validation of a rising wedge pattern is underway, with a downside target of $1,500. Patel emphasized that Ethereum has lost a key rising trendline, and as long as the price remains below it, weakness may persist. Ethereum's liquidation map indicates that a correction below $2,000 would trigger over $1.70 billion worth of leveraged long ETH liquidations across all exchanges, as per CoinGlass data.
Ether's recent rebound to $2,400 did not result in broad-based accumulation among major wallet cohorts, according to Glassnode data. The number of mega-whale wallets holding more than 10,000 ETH has sharply declined to a 10-month low of 1,050, with the 30-day change dropping to levels last seen in early February. Similarly, Ethereum wallets holding 1,000 to 10,000 ETH have also been decreasing, reaching a nine-month low of 4,750 on May 8. The ongoing distribution and weak conviction among key ETH holder cohorts suggest a risk of a deeper drop if $2,000 is breached. This reduction in whale counts aligns with recent inflows into exchanges, indicating that the path of least resistance remains downward in the immediate future as selling pressure mounts.
