Ethereum Price Faces Potential Dip to $2,350 as Lower Lows Develop

The price of Ethereum has consolidated following a peak it reached earlier this week. This rise provided a significant boost to the cryptocurrency market, which had previously seen ETH struggle while Bitcoin flourished. However, the upward momentum has not sustained, as prevailing bearish trends have emerged, leading to a dominant selling pressure. It appears that the decline in Ethereum’s price might have reached a critical juncture.

Lower Lows Indicate a Concerning Pattern for Ethereum

Analyst Gianni Pichichero offered insights into the current trajectory of Ethereum and the implications of recent market movements. He discussed various aspects of the price behavior following the bullish turn at the start of the week and the subsequent unexpected bearish shift.

Gianni noted that the week opened with significant volatility, establishing the month’s highest point before subsequent declines. This indicated that major market participants were actively involved, driving Ethereum upwards to the $2,700 level, a position not seen for over a month, setting an optimistic tone.

On Tuesday, Ethereum continued its upward trend, achieving a higher price than the previous day, suggesting a potential continuation of this bullish phase. The day concluded positively, with strong support from buyers throughout trading hours.

However, by Wednesday, the trend shifted. After consecutive bullish days, the market entered a phase of consolidation, which brought Ethereum’s price back into the range established at the week’s opening, resulting in the first negative close of the week.

According to Gianni, this initial negative close was perceived as a bearish indicator. While it did not necessarily forecast a continued decline, it suggested the end of the bullish momentum that had begun earlier in the week. By Thursday, the market had noticeably reversed, testing the lows of the previous day and producing another negative close, reinforcing bearish sentiment.

The emergence of lower lows over these two days has raised concerns, with the analyst highlighting potential breakpoints that could see Ethereum’s price drop below $2,400, potentially erasing significant gains made in recent weeks.

Moving forward, Gianni advised against expecting dramatic price movements. Instead, he emphasized the importance of looking for opportunities to sell at elevated prices in the current market. He stated, “I will be watching for any opportunities to sell high after the news, supported by bearish price action characterized by triple tops, double tops, or any reversal patterns near the highest prices recently achieved.”