Popular cryptocurrency trader Jonny Moe has poured more salt on the wounds of Ethereum holders by claiming that the biggest altcoin is in for another price drop.
Moe explains that a “clear” breakdown from a rising wedge pattern is a tell-a-tell-sign that more downside seems to be on the cards.
A bearish reversal pattern
A rising wedge is formed when the resistance line converges with the support line. It indicates buyer exhaustion, which is why it is treated as a bearish formation.
When a certain asset records a high-volume drop below the support line, it is usually followed by a deeper pullback.
Considering how steep the lines are on the Ethereum chart, there is a high chance of a bullish-to-bearish price reversal.
In the meantime, a fractal posted by pseudonymous crypto trader Mac shows a potential drop to $160.
Another Bitcoin drop
Ethereum started the new decade with a bang: it rallied 110 percent and reaches its 2020 high on $287 on Feb. 15.
Following the events of “Black Thursday” of March 12, it plunged 55 percent to sub-$100 levels before slowly recovering in tandem with Bitcoin.
After the most recent Bitcoin price pullback, Moe expects the benchmark cryptocurrency to continue falling, with Ethereum following suit.