{"id":401626,"date":"2022-01-31T13:49:38","date_gmt":"2022-01-31T10:49:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-price-risks-dropping-to-2k-on-bear-flag-setup\/"},"modified":"2022-01-31T13:49:38","modified_gmt":"2022-01-31T10:49:38","slug":"ethereum-price-risks-dropping-to-2k-on-bear-flag-setup","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-dropping-to-2k-on-bear-flag-setup\/","title":{"rendered":"# Ethereum price risks dropping to $2K on &#8216;bear flag&#8217; setup"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a2e0fb97c138\" 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-6a2e0fb97c138\" 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-price-risks-dropping-to-2k-on-bear-flag-setup\/#Ethereum_chart_paints_bearish_pattern\" >Ethereum chart paints bearish pattern<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-dropping-to-2k-on-bear-flag-setup\/#Rate_hikes_ahead\" >Rate hikes ahead<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-risks-dropping-to-2k-on-bear-flag-setup\/#2000_first_for_ETH_price\" >$2,000 first for ETH price?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum price risks dropping to $2K on &#8216;bear flag&#8217; setup <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ethereum&#8217;s native token Ether (ETH) will extend its 30% slump this year to the lowest price level since July 2021, if a textbook technical indicator plays out.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_chart_paints_bearish_pattern\"><\/span>Ethereum chart paints bearish pattern<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ETH&#8217;s price fell to its six-month low of $2,159 on Jan. 24, 2022, only to rebound sharply to as high as $2,724 days later. However, this created a so-called &#8220;bear flag&#8221; chart pattern that suggests the price could drop to $2,000 or a 17% drop from current levels.<\/p>\n<p>A bear flag <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 on the chart when the price consolidates higher after a strong momentum downwards but eventually moves further lower after breaking out of the upward range. In doing so, the price tends to drop by as much as the length of the previous decline, called &#8220;flagpole.&#8221;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/ae85e503-2e3a-4eb6-a292-e0f1e774aaf8.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart featuring bear flag setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In Ether&#8217;s case, the flagpole&#8217;s height comes to be over $850. That roughly shifts its bear flag price target towards $2,000. Earlier this year, another bear flag formation had resulted in a similar decline, as shown in the chart above.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rate_hikes_ahead\"><\/span>Rate hikes ahead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The prospect of Ether hitting $2,000 in the coming months increases further due to Bitcoin (BTC) and its vulnerability to macroeconomic trends.<\/p>\n<p>Notably, the positive correlation efficiency between the Ethereum token and Bitcoin has been 0.92 in the past 30 days, according to data from CryptoWatch. In other words, Ether tailed the BTC price trends with a 92% accuracy in January 2022.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/60dae252-dcc0-4f22-9ff1-334af60ce501.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin&#8217;s correlation with altcoins in the past 30 days. Source: CryptoWatch<\/em><\/figcaption><\/figure>\n<p>At the core of the said bearish outlook is the Federal Reserve&#8217;s dovish policy. In detail, the U.S. central bank&#8217;s decision to completely withdraw its $120 billion a month Covid-19 stimulus program by early March and to increase benchmark rates from their near-zero levels after that have started hurting the so-called pandemic winners, including tech stocks, gold, and Bitcoin.<\/p>\n<p>Paul Krugman, a Nobel prize-winning economist and a long-term skeptic of cryptocurrencies, envisioned a Bitcoin price crash in 2022, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.marketwatch.com\/story\/crypto-collapse-has-echoes-of-the-subprime-crash-says-nobel-laureate-risks-disproportionately-fall-on-those-who-dont-know-what-they-are-getting-into-11643393913\">noting<\/a> that it had &#8220;disturbing echoes of the subprime crash&#8221; during the 2008 economic crisis.<\/p>\n<p>&#8220;If you ask me, regulators have made the same mistake they made on subprime: They failed to protect the public against financial products nobody understood, and many vulnerable families may end up paying the price,&#8221; he warned.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2000_first_for_ETH_price\"><\/span>$2,000 first for ETH price?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As Ether looks bearish under the shadows of Bitcoin, many analysts anticipate the Ethereum token resume its climb later in 2022, owing to its involvement in the emerging decentralized finance (DeFi) and nonfungible token (NFT) sectors. <\/p>\n<p>For instance, billionaire investor Mark Cuban noted last year that Ether could surpass Bitcoin in terms of growth.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I like Eth\/L2s more, and there is no point arguing the Trilemma, halving or inflation. I like it more because I can see an unlimited number of applications that will change the biz\/consumer world forever. And to use them you need to buy Eth\/L2. BTC doesn&#8217;t have that demand pull<\/p>\n<p>\u2014 Mark Cuban (@mcuban) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mcuban\/status\/1449568505355976706?ref_src=twsrc%5Etfw\">October 17, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, predicted Ether to hit $5,000 in 2022 despite Fed&#8217;s tapering policies. The veteran analyst called the central bank&#8217;s rate hike plans a &#8220;win-win scenario&#8221; for Bitcoin and Ether against the U.S.&#8217;s four-decade high inflation.<\/p>\n<p><strong><em>Related:\u00a0Ethereum hash rate scores new ATH as PoS migration underway<\/em><\/strong><\/p>\n<p>Nonetheless, McGlone anticipated Ether to hit $2,000 first before continuing its move higher. Notably:\u00a0<\/p>\n<blockquote><p>&#8220;A top force to stop central-bank restraint is a decline in the stock market, with implications for cryptos [&#8230;]\u00a0Price supports exiting 2021 of about $30,000 for Bitcoin and $2,000 for Ethereum appear solid.&#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<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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Ethereum chart paints bearish pattern ETH&#8217;s price fell to its six-month low of $2,159 on Jan&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":401627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMjdkOGY5OTAtYzhjZS00NjdlLWFhNzMtM2ViYWU3OGExY2YyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74937,81262,82402,74891,74938,74939,75150,70550,70552,73711,73785,71407],"class_list":["post-401626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-price","tag-cryptomarket","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-market-update","tag-federal-reserve","tag-interest-rates","tag-investments","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/401626","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=401626"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/401626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/401627"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=401626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=401626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=401626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}