On the Ethereum/USD four-hour chart, a worrying pattern has been noticed by a crypto analyst known as “@TheMoonCarl” on Twitter.
A bearish head and shoulders pattern is forming for Ethereum, the second-largest cryptocurrency by market value, according to a graphical chart provided by the expert. If confirmed, this pattern may send Ethereum down to a target price of $1,570.
A head and shoulders pattern is a bearish reversal pattern that alerts traders to the pinnacle of the upswing and the beginning of a reversal.
However, according to crypto analyst Ali, the second-largest cryptocurrency by market capitalization has weak network fundamentals.
He makes reference to the fact that the annual average had rejected the monthly average of active ETH addresses, suggesting a poor network foundation and lower utilisation.
Traders will watch for macroeconomic news in addition to technical and fundamental considerations as markets prepare for a critical week of U.S. economic events. This following Friday will see the release of the April nonfarm payroll figures, and the Federal Reserve is expected to boost rates by 25 basis points on Wednesday.
After increasing for four straight months through April, Ethereum started to decline at the beginning of May. The price of the cryptocurrency, which was down 3.16 percent, was $1,844. Ethereum’s 2023 rebound from the crypto market meltdown last year came to a halt on April 16 at a high of $2,140 as traders anticipated new triggers. The expectation of the Shapella update, which went live on April 12, was what gave the surge impetus in March.
The release of “Phantom multichain” with support for multiple secret recovery phrases has been announced by Phantom, the first Solana wallet designed for NFTs and DeFi. Users won’t need to transfer wallets to utilise Solana, Polygon, or Ethereum.
