Ethereum’s recent price crash has invalidated a crucial bullish chart pattern, increasing the risk of further downside. The cryptocurrency dropped to a low of $2,146, its lowest level since August last year, representing a decline of approximately 40% from its December high.

Ethereum Price Analysis

On the weekly chart, Ethereum has formed two distinct patterns in recent months. Firstly, it developed a triple-top formation around the $4,000 level, struggling to break above that point since March last year. A triple-top is a well-known bearish signal, often leading to further losses once the price drops below the neckline. In Ethereum’s case, the neckline was at $2,146, which was its lowest level in August last year.

Ethereum also formed an inverse head and shoulders pattern, a popular bullish indicator. This pattern consists of a neckline, two shoulders, and a head. However, Ethereum has invalidated the inverse head and shoulders pattern by moving below the left shoulder.

Potential Price Movement

With the triple-top pattern now in play, Ethereum could face further declines, potentially dropping to the next key support at $1,520, its lowest point in October 2023. A strong bullish breakout would only be confirmed if Ethereum rallies above the triple-top resistance at $4,000.

Ethereum Network Challenges

Ethereum’s price struggles come as the network grapples with significant challenges. Data shows that Ethereum is no longer the most profitable blockchain network, with Circle, Solana, Tron, Jito, and Tether generating more fees.

Ethereum has also lost its long-held dominance in the decentralized exchange sector. Over the past seven days, decentralized exchanges built on Ethereum processed nearly $20 billion in transactions—lower than BNB Chain’s $25.7 billion and Solana’s $42 billion.

Additionally, Tron has surpassed Ethereum in stablecoin transaction volume, primarily due to its lower transaction fees. Spot Ethereum exchange-traded funds have seen a lukewarm reception on Wall Street, attracting just $2.76 billion in inflows since September last year, compared to Bitcoin funds securing over $40 billion.

Investors should keep a close eye on Ethereum’s price movement and the network’s challenges. To stay up-to-date with the latest cryptocurrency news and trends, visit Global Crypto News for more information.

Key Takeaways:

  • Ethereum’s price has crashed to a key support level, increasing the risk of further downside.
  • The cryptocurrency has invalidated a crucial bullish chart pattern.
  • Ethereum faces significant challenges, including losing its dominance in the decentralized exchange sector and lower fees.
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