The price of Ether (ETH), the second-largest cryptocurrency by market capitalization, is facing mounting selling pressure that could drag it into a new bearish cycle. A technical analysis from Oppenheimer & Co., reported this Tuesday, October 14, warns of the formation of a chart pattern that anticipates a significant decline, setting off alarms among investors.
According to Ari Wald, head of technical analysis at the investment firm, a “head-and-shoulders” pattern has consolidated on Ether’s price chart. This indicator is traditionally interpreted in the markets as a signal of a trend reversal from bullish to bearish. The projection suggests that the digital asset could fall nearly 25% from its current levels.
Is a Drop to $2,000 Approaching?
The hard data from the analysis is specific and points to critical price levels for Ether’s immediate future. The key support, known as the pattern’s “neckline,” is located at approximately $2,800. A confirmed break below this threshold would be the definitive signal to validate the pessimistic scenario, opening the door for a decline that could push the Ether price in a bear market down to the $2,000 zone.
This potential downturn is part of a broader context of generalized weakness in the cryptocurrency market. The selling pressure is not unique to Ether; in fact, Bitcoin (BTC) has also shown signs of exhaustion. This situation is compounded by an uncertain macroeconomic environment and recent capital outflows from US spot Bitcoin exchange-traded funds (ETFs), which reduces liquidity and risk appetite across the entire digital economy.
The significance of this warning lies in its potential to mark the beginning of a prolonged bearish phase for the leading altcoin. For investors, a drop towards $2,000 would represent a considerable loss, reversing gains accumulated in previous months. Although Ether is already more than 40% below its 2021 all-time high, the confirmation of this pattern would add further downward pressure.
The current situation underscores the inherent volatility of the crypto market and the importance of technical indicators in anticipating price movements. Traders are closely monitoring the $2,800 level, as its defense or breach could determine the market’s direction in the short and medium term.
Although the technical analysis presents a challenging outlook, the cryptocurrency market is known for its dynamism. For now, Ether’s price structure hangs by a thread, and the potential entry of the Ether price in a bear market depends on whether buyers can defend the critical support in the coming sessions. The next moves will be crucial in defining whether the asset manages to invalidate this ominous technical signal or if, on the contrary, it heads towards a deeper correction.
