Ethereum price could be setting up for a devastating decline in the coming months. Key levels have been defined to gauge ETH’s potential landing zones.
Ethereum price to $400
Ethereum price lost 40% of market value this month and has since rebounded by 18%. While traders are enjoying the countertrend plays to the upside, Ethereum’s larger monthly outlook looks evermore bearish.
Ethereum price currently trades at $1,278. Since the summer, the decentralized smart-contract token has been confined within a coiling range. The ETH price has produced higher lows and lower highs. Diving deeper into the technicals, the monthly chart appears to have formed a symmetrical triangle.
If the triangle is valid, the projected target from the ascending trend line would be near the $450 price level. The aforementioned zone also has an Elliott Wave Trend Channel in the same vicinity that has not been retested.
Considering these factors, traders may want to stay aligned with Ethereum’s larger narrative and avoid overly confident countertrend trades. A breach of the $970 swing low could trigger a 56% bear rally.
Invalidation of the bearish thesis could occur if the bulls can surpass the range high of $2,031. A breach above $2,031 could make for a potential uptrend surge targeting the $3,000 liquidity zones. The zone has also remained untested since losing support in 2022. If the bearish scenario played out, the ETH price would increase by 145% from the current market value.
