- Ethereum price spots a classic Head & Shoulders pattern.
- Ethereum price is halfway to the intended target.
- Invalidation of the bearish outlook is a breach above $2725.
ETH price is setting up a classic trading pattern, an opportunity to go short could present itself in the days to come.
ETH price could present a bearish trade setup
Ethereum price is currently trading at $1935 as the bears have pushed into the lowest price territory for 2022. Ethereum price sell-off is primarily correlated with the overall sentiment in the crypto market regarding security vs. asset arguments, NASDAQ correlations, and the most recent LUNA / UST algorithmic stablecoin scandal, which proposes the sustainability question for other cryptocurrencies in the space.
Ethereum price sell-off is quite powerful according to the volume profile indicator. The technicals depict a classic head and shoulders pattern, which forecasts a price target of $1400. Currently, the ETH price is about halfway from the target and could likely retrace upwards before making the next move down. A bearish trade setup could present in the days between $2100-$2400, but the scenario has not materialized enough to give a specific entry point.
ETH/USDT 2-Day Chart
Overall the invalidation of the downtrend will be a breach above $2725. If the bulls can breach this target, the bearish outlook will be void. The ETH price could aim for $3800, resulting in a 100% increase from the current Ethereum price.
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