Ethereum (ETH) investors are preparing for a potentially turbulent future as a well-regarded crypto analyst raises doubts about the smart contract platform’s prospects. In a recent report, Nicholas Merten warns that Ethereum has less than a year to break free from an ascending triangle pattern, which holds significant implications for the cryptocurrency’s trajectory.
The ascending triangle pattern is a chart formation that typically signals an impending breakout. It occurs when the price of an asset forms higher lows, creating a rising trendline (the ascending side of the triangle), while facing resistance at a horizontal level (the flat top of the triangle). The longer the pattern persists, the greater the pressure for a decisive price move, either upwards or downwards.
Merten, a prominent figure in the crypto community, has been closely monitoring Ethereum‘s performance in relation to this crucial pattern. He expresses concern over Ethereum’s inability to convincingly breach the resistance at around $2,000. “Ethereum cannot show up to the plate. It keeps getting shot down at around $2,000, and that’s okay for a while,” he emphasizes. “But eventually, you’ve got to be able to either break out to the upside or, if you break through the ascending line of support to the downside, that spells bad news.”
Meanwhile, a separate report highlights a puzzling trend that adds to the uncertainty surrounding Ethereum. Approximately 640,000 ETH has recently left exchanges, a move that could be interpreted as a bullish sign. This outflow suggests that investors may be hoarding Ethereum for the long term, anticipating a future price surge.
However, caution is advised. Ethereum’s long-term performance has been lackluster, with persistent bearish trends weighing it down. This raises doubts about the credibility of the accumulation theory. While investors may be tempted to stock up on Ethereum at its current lower price point, they must tread carefully given the unpredictable nature of the cryptocurrency market.
At the time of writing, Ethereum is trading at $1,619, showing a 1.7% gain over the past 24 hours but nursing a 1.0% loss in the seven-day period, according to CoinGecko.
The coming months will likely determine whether Ethereum will defy the odds, break free from its current constraints, and reach new heights—or if it will succumb to the pressures outlined by Merten, leading to a collapse that could reshape the crypto landscape.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Daily Express.
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