8/29 Ethereum’s weekly K shows an asymmetric head and shoulders top pattern, and daily K focuses on the price action supported by $2,500.
The recent trend of Ethereum’s weekly K shows a clear asymmetric head and shoulders pattern, which usually indicates further price decline. In this head and shoulders top pattern, the left shoulder is higher than the head, and the head is higher than the right shoulder. This asymmetric structure shows that the bulls were strong in the early stage of the market, but then gradually lost power and failed to maintain the high point.
Currently, Ethereum price is hovering around $2,530, with the key support at $2,800 breaking below and forming resistance. This means that the short pressure in the market is increasing. Once the defense line of $2,500 is lost, the price may further drop to near $2,000.
The Federal Reserve's expected interest rate cut in September may bring some support to the crypto market, but market sentiment remains panic today. Support near $2,500 should be closely watched. Once this area is effectively broken, the downtrend will be further confirmed.
Generally speaking, the recent technical performance of Ethereum is not optimistic, but there are favorable policies that may lead to a short-term rebound on an upward channel. However, in the medium term, the price may continue to be under downward pressure, and investors should be cautious. It does not constitute investment advice, please be aware of the risks.
