The market is experiencing an increase in trading volume and an increase in the rate of the leading cryptocurrencies in terms of market cap. Therefore, Ethereum (ETH) should rise to $2,900 by March 16th.
Ethereum bottomed out around $2,446 (Coinbase data) on March 7 and began to rise. The asset has risen in price by almost 12% in 20 hours and continues to fly north. However, a contracting triangle is forming on the chart. The upper line of the figure is at $2,900, respectively, the ETH price should bounce from $2,900 and go down.
The lower border of the triangle is formed by the uptrend line that started on January 24th. It acts as a powerful support barrier at $2,400. Therefore, as a result of the downward trend that will occur after reaching $2900, the ETH rate should not fall below $2400.
The lines of the shrinking triangle will cross in mid-April. Therefore, the level of volatility will decrease over the next month. The pattern is bearish, so it should be broken down. Given the width of the figure, the coin rate will collapse by 40-50% after the breakdown of the bottom line, that is, the cryptocurrency could potentially fall in price to $1,400.
Obviously, the upcoming dump will be signaled by fixing under the 78.6% Fib, taking into account the pump from $1,700 to $4,867. If the bears overcome the $2,400 barrier and Ethereum rate bounces off this barrier during the correction, then the probability of the coin’s value falling to $1,700 will increase. After the sellers storm the $1,700 barrier, the next support barrier will form at $1,400.