As Bitcoin declines back to $98,000 levels, Ethereum struggles to hold its recovery. With an intraday pullback of 5.36%, Ethereum is back to trade at $2,729.
Currently, Ethereum is hinting at an extended downfall as it fails to reclaim the $3,000 mark with the last-night recovery run. Will the concurring bullish failure in Ethereum price trend result in an extended downfall?
World Liberty Financial’s Strategic Reallocation
Amid the recent market shakeout, Donald Trump’s World Liberty Financial has made high-volume movements in its crypto holdings under regular treasury management. In a recent X post, the fund highlighted,
“To be clear, we are not selling tokens. We are simply reallocating assets for ordinary business purposes.”
This comes as a potential measure to avoid panic in the crypto market and limit speculations related to the managing operations. World Liberty Finance has moved 90% of its multi-asset treasury, including its sizable ETH and wrapped BTC holdings.
The fund has also made significant changes in its AAVE, ENA, and LINK tokens. The fund has moved $307.41 million after unstaking 19,423 stETH to ETH. Furthermore, the fund has spent $5 million USDC to purchase 1,826 ETH tokens at an average of $2,738.
Ethereum Analysis: Failed Inverted Head and Shoulder Pattern?
In the weekly chart, Ethereum price trend hinted at a potential inverted head and shoulder pattern. The neckline of the pattern coincided at the $4,000 psychological mark.
However, with the broader market crash, Ethereum is down to $2,700 levels. This marks a pullback of nearly 35%over the past seven weeks.
The downfall has breached the previous left shoulder bottom near the $2,900 mark. Currently, it tests the 100-week EMA line after projecting a lower price rejection slightly below the 200-week EMA.
This definitely highlights the underlying support for Ethereum at lower levels. However, the price action analysis reveals the bullish failure to create the inverted head and shoulder pattern.
Currently, with the ongoing pullback, the weekly RSI line has dropped under the halfway level, reflecting a continuous surge in significant selling pressure. With the lower price rejection, the possibility of a morning star pattern with a potential recovery stands on the horizon.
ETH Price Targets and Key Levels
Amid the broader market volatility, the downfall in Ethereum could likely retest the 200-week EMA line near $2,284. In case of a bullish reversal completing the inverted head and shoulder pattern, the uptrend in Ethereum could likely scale to the $4,000 mark.
To do so, Ethereum must avoid a closing price under the 100-week EMA line at $2,695.
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