A bearish continuation seems to be on the forecast following ETH’s latest dive with a downside target down by 20% of the current price.
ETH fell on the last day of the Q2/2022 which kept in sync with other risky assets. This is along with linger concerns of high inflation and interest rates in the markets. Heading into the third quarter, further declines may be expected.
June 30th saw ETH dip by 5% to $1,044 after four days of loss. ETH/USD is below its interim rising trendline support, meaning that an ascending triangle pattern may be on the way.
An ascending triangle pattern is an indication of the continuation of bearish patterns after a downtrend. The ascending triangle usually results in the price falling even lower. The expected loss may be around 20% in Q3 plunging the price to around $830. This bearish trend is aided by an added number of ETH on exchanges.
Investors have limited their exposure to Ether by withdrawing capital from their dedicated investment funds. Ether investment products have seen outflows of 136.9 million in June. total outflows for the year to date have been $450 million confirming bearish market trends for ETH.
Fortunately, the decline of ETH price in June has resulted in many whales buying the dip.
“Ethereum shark and whale addresses (holding between 100 to 100K $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip [since June 7],” noted Santiment, a crypto-focused data analytics platform.
“Historical evidence points to this tier group having alpha on future price movement.”
Smaller investors have also been showing the same behaviors with a notable increase in addresses holding ETH since the end of last year.