Ethereum (ETH) trading volume and the level of volatility are decreasing. Therefore, there will be no dramatic changes in the market over the next week, and ETH/USD will rise in price to a maximum of $ 2,800.
Ethereum price changes within a contracting triangle. The upper border is now at $ 2,830, and the lower one is at $ 2,380. The lines of the figure will cross on June 21. Therefore, the rate volatility level will gradually decrease over the next 10 days. The pattern is bearish; therefore, the triangle is likely to be broken downward. Given its width, the downtrend will continue to at least $ 1,500 (if it breaks from the upper line).
The chart demonstrates that volume of ETH trading falls during an upward movement, and, on the contrary, it grows during a downward movement. Typically, this phenomenon is observed in a bear market. Thus, in the medium term, the cryptocurrency has no chances to break through the resistance in the range of $ 2,800-2,900 and gain a foothold above this zone.
The pause of the bearish trend in the ETH market gives hope for the coming reversal. Many traders call the current situation consolidation and predict the growth of the asset value after its completion. However, during a downtrend, the flat usually turns into a powerful dump, so it is worth considering the negative scenario, which provides for a drop in the Ethereum rate to $ 1,200 by August 2021.
After the dump in 2018, the flat lasted for a month. As a result of the subsequent round of the bearish trend, the coin fell 58% in two weeks. By analogy, we can assume that:
Ethereum’s price was based on Fibonacci levels, taking into account the fall in the value of the coin from $ 4,380 to $ 200. In this regard, the nearest strong support barrier is in the area of $ 2,300 (50% Fib). If sellers break through this barrier, the price of the coin will drop to $ 1,800. The next obstacle will be located at the 23.6% Fib – $ 1,200.