In a higher interest rate environment, Ethereum’s native cryptocurrency, Ether (ETH), continues to suffer downside risks. However, one analyst believes that the token’s next selloff could turn into a bear trap as the market anticipates the Merge’s release in August.
According to a technical setup released on May 20 by Wolf, an independent market expert, Ether’s price might reach $4,000 before the end of 2022.
The analyst predicted that ETH would move within a multi-month ascending triangle pattern with a horizontal trendline resistance and rising trendline support.
Notably, ETH’s recent retest of the structure’s lower trendline may signal the start of a large comeback toward the structure’s higher trendline, which is currently around $4,000.
Wolf got his bullish inspiration from a similar triangle formation from 2016, which preceded a massive bull run from $1 to $27. Another ascending triangle formed in 2017 was followed by a bullish follow-up, with ETH/USD rising 270 percent to over $1,500.
Reasons behind the bearish outlook
Preston Van Loon, one of the Ethereum core developers, stated that the blockchain project’s much-anticipated upgrade to a proof-of-stake consensus mechanism would take place sometime in August.
Wolf speculated that Ethereum was preparing a “bear trap,” which would make sense prior to the update and would complement his technological setup, as explained above.
A fost util acest scris?
Source: https://coinpedia.org/ethereum/ethereum-eth-price-to-fall-950-1900-by-october-2022-heres-why/