Crypto Analyst Trend Diva’s Insights on Ethereum Price Action

Crypto analyst Trend Diva has provided an in-depth analysis of the current Ethereum price action, indicating that ETH is still moving inside an ascending triangle but warned of further downside pressure if it fails to stay above a crucial support level.

Ethereum Price Still Inside An Ascending Triangle Despite Recent Crash

In a TradingView post, Trend Diva revealed that the Ethereum price is moving inside a clear ascending triangle. The upper boundary acts as long-term resistance, while the lower boundary provides dynamic support. This analysis comes amid ETH’s recent decline below $2,000.

The analyst noted that after a steady climb, the Ethereum price started showing weakness, confirmed by a head and shoulders pattern, a common sign that the trend might reverse. This weakness led to a strong drop for ETH, bringing its price down to the key support zone around $2,000.

Trend Diva stated that this support area is important for the Ethereum price because it meets with a major trendline, making it a likely spot where buyers could step in. She added that the volume profile also shows considerable activity in this zone, indicating traders’ interest at these levels.

The analyst remarked that if the Ethereum price holds above the $2,000 support, it could bounce back towards the $2,800 level, representing previous resistance. However, a breakdown below the trendline could shift the bias bearish towards $1,414. For now, as long as ETH stays above $2,000, a rebound to $2,800 remains possible.

It is worth mentioning that the Ethereum price briefly lost the $2,000 support level following a crypto market crash on Sunday, raising the possibility of a drop to as low as $1,414, as Trend Diva warned.

A Drop To As Low As $1,250 Is Also On The Cards

In an X post, crypto analyst Ali Martinez highlighted that the Ethereum price seems to be breaking out of a parallel channel, suggesting ETH could drop to as low as $1,250 if momentum continues. ETH whales are making efforts to defend the $2,000 support zone to prevent Ethereum from reaching these new lows.

Martinez pointed out that the largest whales on the network have purchased 330,000 ETH in the last 48 hours. This significant whale accumulation could help stave off further downside pressure and potentially ignite a bullish reversal for Ethereum’s price.

At the time of writing, Ethereum’s price is around $2,065, down over 5% in the last 24 hours, according to CoinMarketCap.

Featured image from iStock, chart from Tradingview.com