Ever since the ETH price dropped from crucial levels at $2000, it has been trying hard to reclaim these lost levels. Unfortunately, it faced a strong rejection, causing the price to fall with huge intensity. The bears also prevented a rebound and kept the price in consolidation for the next couple of months. Presently, the Ethereum price has reached the lower support of the ascending consolidation, which suggests a trend reversal could be near.
Despite the current bearish scenario, the ETH price flashes bullish signals over the long term. The price has been trading within a rising wedge pattern, and after the recent rejection, a rebound from the lower support appears to be imminent. The second-largest token has been following a pattern since the beginning, and hence, a rise beyond $4000 appears to be imminent.
The ETH price in the weekly timeframe has formed a huge harmonic triangle, which the price has accomplished with the 4th wave. However, the 5th wave doesn’t appear to have reached the upper resistance of the rising wedge that it has been trading for over 5 years now. Therefore, achieving the levels at the peak of the 5th wave indicates the possibility of a bearish breakdown, which may extract acute gains.
Considering the long-term price action, it appears that the price may not test the current ATH at $4,891.70 but may face a rejection of $4000. Following the rejection, the price is expected to trigger a massive drop that may shed more than 90% of its value and compel it to trade even below a three-digit figure, breaking out of the wedge.
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