The post Ethereum might decline further in short-term: How and why? appeared on BitcoinEthereumNews.com.

ETH appeared to be forming an inverse head-and-shoulders pattern, which often precedes a significant upward move. Selling pressure was steadily increasing, potentially delaying any price recovery. Over the past month, Ethereum [ETH] has struggled, losing 12.08% of its value. While it briefly rebounded with a 2.69% gain last week, this momentum seems to be fading. The combination of chart patterns and current market sentiment—highlighted by a spike in ETH inflows to exchanges—suggests that its recent 0.35% decline in the past 24 hours could extend further. A bullish pattern is emerging, but… According to analyst Ali Charts, Ethereum is forming an inverse head-and-shoulders pattern on the daily chart. This pattern consists of a left shoulder, a head, and a right shoulder. The inverse head-and-shoulders is a classic bullish pattern. It typically signals a prolonged period of price consolidation before a significant upward move. ETH is currently developing the right shoulder of the pattern. This mirrors the left shoulder, with the price trending lower along a descending line. If this trajectory continues, ETH could drop further to the $2,800 region. At this level, it may consolidate for up to 37 days, like the left shoulder, before breaking through the descending resistance line. Source: TradingView A successful completion of this pattern could lead ETH to its first major resistance zone between $3,850 and $4,100. Beyond this, ETH could aim for a new all-time high, potentially exceeding the $6,750 mark, as indicated on the chart. AMBCrypto also noted that the current market sentiment suggests ETH’s near-term downside risk remains high. Rising exchange supply could trigger ETH’s decline The supply of ETH on cryptocurrency exchanges has been steadily increasing, raising concerns about potential price pressure. On the 15th of January, the amount of ETH held on exchanges grew significantly, rising from approximately 19,164,848 to 19,214,253…

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Filed under: News - @ January 17, 2025 4:27 pm