{"id":342301,"date":"2021-09-21T19:05:09","date_gmt":"2021-09-21T16:05:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-head-shoulders-chart-pattern-puts-eth-price-at-risk-of-dropping-to-2k\/"},"modified":"2021-09-21T19:05:09","modified_gmt":"2021-09-21T16:05:09","slug":"ethereum-head-shoulders-chart-pattern-puts-eth-price-at-risk-of-dropping-to-2k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-head-shoulders-chart-pattern-puts-eth-price-at-risk-of-dropping-to-2k\/","title":{"rendered":"# Ethereum &#8216;head &#038; shoulders&#8217; chart pattern puts  ETH price at risk of dropping to $2K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4071f91139c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4071f91139c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-head-shoulders-chart-pattern-puts-eth-price-at-risk-of-dropping-to-2k\/#Bullish_outlook\" >Bullish outlook<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum &#8216;head &amp; shoulders&#8217; chart pattern puts  ETH price at risk of dropping to $2K <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ethereum&#8217;s native token Ether (ETH) rates may fall to a two-month low after it slid below support at around $2,954, based on a classic trading pattern.<\/p>\n<p>The $2,954 level represents a so-called neckline constituting a head and shoulders setup. In detail, the said support level <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be a floor to three peaks, with the middle one (HEAD) higher than the other two (SHOULDERS). <\/p>\n<p>A breach below the $2,954 level signals a trend reversal, suggesting that ETH\/USD may fall by a length equal to the distance between the head&#8217;s peak and neckline.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/7abf15c4-72ce-40f6-bd55-4c92d270906f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart featuring head and shoulders pattern. Source: Peter Brandt<\/em><\/figcaption><\/figure>\n<p>Peter Brandt,\u00a0CEO of global trading firm Factor LLC, shared the bearish pattern late Monday, noting that a successful breakdown below $2,954 could crash prices to arou $2,000.<\/p>\n<blockquote><p>&#8220;I am NOT saying I believe it, and I am saying I am not shorting it \u2014 but like it or not, if you own ETH, you will have to deal with it. This possible H&amp;S exists, whether it is completed, fails, or morphs, it exists.&#8221;<\/p><\/blockquote>\n<p>Research conducted by Samurai Trading Academy <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/samuraitradingacademy.com\/7-best-price-action-patterns\/#:~:text=The%20head%20and%20shoulders%20patterns,(the%20head)%20between%20them.\">notes<\/a> that head and shoulders reach their projected target almost 85% of the time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bullish_outlook\"><\/span>Bullish outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether traded at $2,805 as of 00:22 UTC, its lowest level since Aug 7. However, the cryptocurrency later recovered to reach an intraday high of $3,104 and was wobbling around $3,000 at the time of writing.<\/p>\n<p>The seesaw price moves came as a part of a correction trend that started after ETH\/USD formed a sessional top at $4,030 on Sept 3. As a result, the pair initially fell by as much as 25.34% to hit $3,009. It then recovered back to as high as $3,675.\u00a0<\/p>\n<p>Nonetheless, bulls started losing control all over again at the beginning of this week as a wave of selling triggered by a tumult in China&#8217;s heavily indebted property sector hit crypto and traditional markets alike. <\/p>\n<p>Ether dropped by 10.58% on Monday.<\/p>\n<p>Some analysts anticipate that the Ethereum token would recover again if its price held above historic support levels. For instance, pseudonymous chartist PostyXBT <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PostyXBT\/status\/1440217219674230786\">mentioned<\/a>\u00a0$2,850 as &#8220;an important level&#8221; that kept Ether&#8217;s bullish bias intact.<\/p>\n<p>&#8220;Good to see ETH\u00a0testing a key level of support at the same time as BTC,&#8221; the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>ati noted. <\/p>\n<blockquote><p>&#8220;Similar to BTC at ~$40k, ~$2850 is an important level that must hold.&#8221;<\/p><\/blockquote>\n<p>PostyXBT&#8217;s chart setup envisioned ETH\/USD to retest $4,000 in the coming sessions.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/16914790-31c6-4ed0-bcae-cb60d0d03127.jpeg\"><figcaption style=\"text-align: center;\"><em>ETH\/USD weekly price chart featuring $2,850 level&#8217;s history as support and resistance. Source: TradingView.com, PostyXBT<\/em><\/figcaption><\/figure>\n<p>The Crypto Monk, another pseudonymous analyst, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/thecryptomonk\/status\/1440298007203704843\">added<\/a> that the latest declines flushed out weak traders and presented opportunities for strong hands to buy and send the Ether prices to a new all-time high. <\/p>\n<p><strong><em>Related: Bitcoin in \u2018good shape\u2019 as long as BTC price stays above $40K \u2014 Mike Novogratz<\/em><\/strong><\/p>\n<p>Brandt also noted that ETH\/USD&#8217;s drop might lead to a potential &#8220;bear trap,&#8221; a technical pattern\u00a0that occurs when an asset&#8217;s price performance incorrectly signals an end of a bullish trend. As a result, traders with leveraged short positions could suffer losses should the spot ETH\/USD rates rebound.<\/p>\n<p>&#8220;I have a strong suspicion that recent weakness, especially overnight, successfully washed out weak longs and might have trapped some bears,&#8221; Brandt wrote.<\/p>\n<blockquote><p>&#8220;Of course, subsequent price action would need to confirm this.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The $2,954 level represents a so-called neckline constituting a head and shoulders&#8230;<\/p>\n","protected":false},"author":1,"featured_media":342302,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvNzlmNzJjNmYtODExYi00ZmI3LWJkYzItY2YzMDM2NzczZmFiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74937,74982,82962,82402,74891,74938,74939,75150,78261,4973,71290,5069,73785],"class_list":["post-342301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin-price","tag-btc-markets","tag-coinmarketcap","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-market-update","tag-tech-analysis","tag-china","tag-economics","tag-economy","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=342301"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342301\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/342302"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=342301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=342301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=342301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}