Ethereum price ‘bear flag’ could sink ETH to $2K after 20% decline in three weeks

Ethereum’s native token Ether (ETH) has dropped by nearly 20% inThe last three weeksMonthly lows of $2,900 were recorded April 19. ButTechnicals indicate that there is more downside to the rebounding of above $3,000 since then. inIn the near future, according toA classic bearish pattern.

Ethereum priceActivated the “bear Flag” setup

Dubbed”Bear flag,” the bearish continuation sign appears as priceConsolidates higher within an ascending parallel channel afterA strong downward movement (called the flagpole). It resolves afterThe priceBreaks from the channel toDrop further.

ETH’s priceTurned lower afterTesting its bear flag’s upper trendline on April4 and now eyes an extended declineIt is closer to its lower trendline of $2,700 IfThe pattern works as expected. price couldDrop further, with the target at length equal toAs shown, the flagpole’s height inBelow is the chart.

Ethereum price 'bear flag' could sink ETH to $2K after 20% decline in three weeks
ETHDaily: /USD priceChart with ‘bear Flag’ setup SourceTradingView

AsA result Ether’sBear flag setup could lead to a $2,000 retest inThe second quarter. 

ETH price: macro factors

Ethereum’sCorrelation with BitcoinIts downside risks are also higher in traditional markets. inRecent months

ForFor example, the correlation coefficient between Ether Nasdaq100 was 0.95 April 19. A coefficient of 1 indicates that the assets move at a rate of 1. in perfect tandem.

Ethereum price 'bear flag' could sink ETH to $2K after 20% decline in three weeks
ETH/USD Nasdaq100 correlation coefficient for daily chart. SourceTradingView 

Ether priceSince 2022, it has fallen by almost 19% Meanwhile, Bitcoin, stock and other riskier markets have also fallen this year as investors assess the Federal Reserve’sWillingness toIt aggressively raised rates and reduced its $9 trillion balance sheet.

Longer-term bullish factors

More or less, ETHThe primary reason for’sfall is due to toFeelings that less cash would be available to purchase riskier assets.

Related: Here’sHow EtherOptions traders couldPrepare for the proof of stake migration

NonethelessSpeculators remain optimistic about a long term uptrend. toIts much-anticipated protocol update called “the Merge” Most likely toBe released after June.

“ETHIs still under the selling pressure of the people who wanted toYou can make quick money by selling the Merge,” notedDoopleCash, an independent analyst of the market, adds:

“AtSome moments inWe will find equilibrium over time. I’mNot interested inI do not want to predict the bottom. to”Assemble as much as you can before we get there.”

AdditionallyThe months are quickly approaching toThe technical update coincided with a downward trend of EtherExchanges hold the number of nonzero ETHAddressees climb, and more ETHThe waters flow into the Merge’sOfficial Smart Contract

Kennan Mell, an analyst at Seeking Alpha, argues that Ethereum’sStyle of running shadow forks before the MergeLaunch increases the chance of updating toYou will be successful right away. ThisShould be able to influence more investors, especially those who are on the sidelines. to accumulate Ether inThe long-term. 

TheThese views and opinions are solely the author’s and do not necessarily reflect those of Cointelegraph.com. EveryTrading and investment involve risk. You should do your own research before making a decision.