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October 31, 2023

Ethereum Price: Potential Correction and Recovery Towards $2,000

Thando Dlamini
Written byThando DlaminiWriter
Researched byNikos PapadopoulosResearcher

In the past two weeks, the Ethereum price has experienced a significant surge, reclaiming crucial resistance levels at $1,600 and $1,700. However, the asset is now facing headwinds as Bitcoin struggles to break past the $35,000 mark, leading to increased selling pressure across the crypto market. This has caused the ETH recovery to stall around the $1,800 level, raising concerns about a potential correction.

Ethereum Price: Potential Correction and Recovery Towards $2,000

Wedge Pattern Governs the Current Correction Trend

The Ethereum coin price has been following a falling wedge pattern over the past seven months. This pattern has influenced market participants, with the price rebounding three times from each downsloping trendline. The recent recovery stalled near the pattern's upper trendline, indicating strong selling pressure. Long-wick projections at this resistance level suggest that sellers are pressuring the asset for another downward correction.

Potential Downside Risk

If the Ethereum price breaks below the $1,760 mark, it could trigger increased selling and potentially drive the asset back down to the lower trendline near $1,500. This downside risk should be considered by investors.

Possibility of Regaining $2,000

Despite the current concerns, the prevailing bullish sentiment has not been entirely extinguished. If the ETH price can maintain a price above $1,750, there might be an opportunity for buyers to break out from the falling wedge pattern's upper trendline. Such a breakout would signal the end of the ongoing correction phase and could lead to an extended recovery with a target at $2,030, representing an estimated upside of 14%.

In conclusion, while the Ethereum price has experienced a significant surge, the presence of overhead supply and the potential for a correction should be taken into account. Investors should closely monitor the price action and consider the possibility of a downside risk. However, if the price can maintain its current level and break out from the falling wedge pattern, there is a chance for a bullish recovery towards the $2,000 mark.

About the author
Thando Dlamini
Thando Dlamini
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Thando Dlamini, a vivacious 22-year-old from South Africa, seamlessly blends her love for the vibrant world of online casinos with her meticulous localization skills, making the digital gaming experience truly South African.

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