Ethereum Price Could Drop Another 5%; Here’s Why a Bearish Scenario May Play Out Well
After consolidating below $2000 for the first three quarters, the Ethereum price triggered a massive jump after hitting the lows below $1600. This caused the price to soar by over 55%, which began at the beginning of November, reaching a high close to $2400. This jump was believed to be the start of a fresh bullish run, intending to form a new ATH beyond $5000. However, the correction that followed the ETH price is displaying the possibility of offering a buy at the dip moment very soon.
The recent drop now indicates the price is all set to plunge by another 5% to 6% in the coming days. The trend is descending, heading towards the lower support close to $2000, offering another entry for the long trades. The volume profile of the previous consolidation structure is around $2053, which is a point of control where most of the contracts were traded. The markets usually react to these types of levels very strongly; hence, a bounce could be expected.
The bears are trying hard to outperform the bulls by exercising extensive upward pressure. The rally is now forming constant lower highs and lows, indicating the growing strength among the bears as the selling pressure accumulates. Also, the price has dropped below the elevating trend line that has been acting as a strong support in recent times. Furthermore, the bears thwarted a new attempt to rise above these levels.
Adding more substance, the RSI is failing constantly to rise above average levels, suggesting the weakness piling up among the bulls. This could hamper the progress of the rally, which has already been flashing bearish signals. The ETH price is trying hard to rise above the crucial trend line, but if the bulls fail to do so, a fresh bearish wave may drag it lower towards support.
However, the bulls may quickly jump into finding the token within the liquidity range, but if they manage to break above the upper resistance in the next few days, the bearish scenario may be invalidated. In such a case, the Ethereum price target for 2023 could be beyond $2,450 to $2,500.
