Ethereum might have borne the brunt of a castigating breakdown over the weekend, falling to a negative 14.3 percent premium. It is Ethereum's lowest since listing, as indicated by top crypto investment fund for the digital asset, Grayscale Ethereum Trust, per Coingape.com.
This was attributed to Tesla CEO Elon Musk's announcement of discontinuing Bitcoin as a payment option for purchasing his company's products, as well as the Colonial Pipeline ransomware attack that shut down the nation's largest fuel pipeline with hackers paid nearly $5 million in untraceable cryptocurrency. These developments pulled down both Ethereum and the world's top cryptocurrency, Bitcoin, to record lows.
Ethereum Price Prediction: Gaining Momentum for a Bullish Trend
After that monumental fall from over $4,000 to $3,100, Ether's price movements have since been sluggish since Monday, but it has now settled at $3,391 and slowly gaining momentum for a bullish trend with a 1.4 percent increase. In the short term, however, Ether is at a terrible burden to breach $3,500.
Ethereum Price Chart: Ethereum Forms 'Falling Wedge'
While Ether has formed a falling wedge, CoinGape.com noted a bullish trend that results from a downward price pattern on the 100 Simple Moving Average (SMA) four-hour chart. These falling trend lines, the website further said, create that wedge "connecting a series of lower highs and lower lows."
And before these trend lines converge, a breakout is expected. When the price hits around above the trend line, the bearish pressure would weaken, allowing investors to take over, hinting a spectacular upward trajectory. With a spike in trading volume, this breakout is viewed as certain.
As indicators point to an upward trend, a breach over $3,500 would draw more buyers, thereby allowing Ether to reach possible $4,000 levels.
However, bearish pressure remains on the horizon as the Moving Average Convergence Divergence (MACD) indicators would show, and this means Ethereum is not out of the woods yet. This means at least a $3,100 price level amid all the possible selling is needed to keep the uptrend.
Ethereum Price Stays Bullish Despite Fall
Ethereum price remains bullish, even with the temporary fall over the weekend. Forbes reported a relentless spot bid in Ethereum for the last few weeks that opened the cryptocurrency's interest and increased its price.
It is also growing, with developers building decentralized finance (DeFi) applications for the Ethereum network.
Ethereum, which was valued at $250 years back reached an all-time record high of $4,362.35 early May before its steep fall. As of Sunday afternoon, it was trading in the $3,000 levels.
Insider interest skyrocketed the digital token to astronomical levels. Current trading volume, as per Coindesk.com, is pegged $61.22 billion, while market capitalization is currently valued at $393.38 billion.
It remains to be seen if these predictions will come true. However, with the way the cryptocurrency market is trending and the overall improvements in the Ethereum ecosystem, there is reason to believe it can and will happen.