The bearish trend seen since the high of the year continues for Ether (ETH). It is possible that the price will drop towards $1600.
Ether (ETH) lost 4% yesterday
Yesterday, the crypto market saw a sharp decline, with Bitcoin (BTC) losing 6% hitting major support. Meanwhile, ETH has returned to the $1800 area. According to Bloomberg, this decline could continue, which could indicate a bear market for the month of June. If this downtrend continues, here are the potential price targets for Ether (ETH).
The May low ($1737) would be the closest target on the downside. If Ethereum price manages to break through this level, the next support zone would be found between $1476 and $1558. The bearish reaction of Ether (ETH) on the 50-day moving average confirms this hypothesis. However, it will be necessary to cross the support located at the lower part of the triangle to hope to achieve these bearish objectives.
On the upside, a breakout of the upper part of the triangle could lead to a rise towards the psychological zone around $2000. If this resistance fails to hold the price, a new yearly high for Ether (ETH) could be on the cards. However, for now, the medium-term structure remains bearish.
What opportunities arise?
Looking at the short-term chart of Ether (ETH), there is an opportunity to sell with the current bearish momentum. A short position from the previous week’s low at $1846 could be considered. This level sits between the 61.8% and 78.6% Fib Levels of yesterday’s range, suggesting a potential retracement before a descent towards the previously mentioned targets.
If Ether (ETH) does not react strongly to this zone, the short position will become invalid. In this scenario, it would be possible to consider the breakout of the weekend high, which is around $1915.
Admission: $1846;
Stop: $1875;
Goal 1: $1737;
Goal 2: $1558.
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