Key takeaways:
ETH risks a 15% correction toward $3,560 after breaking below its symmetrical triangle pattern.
Bulls must defend the ascending trendline support to avoid a deeper decline.
Ethereum’s Ether ( ETH ) token price has plunged by more than 7.50% this week, led by de-risking sentiment across the crypto market.
Moreover, technical analysis shows that the ETH price drop has triggered a classic bearish reversal setup that risks more downside ahead.
Ether price risks 15% drop in the near term
Ethereum’s breakdown from the symmetrical triangle tilts the short-term outlook bearish. Typically, such patterns resolve in the direction of the prevailing trend, but a downside breach can flip the pattern into a reversal signal.
The measured move from this triangle setup points toward $3,560, suggesting ETH could fall another 15% from current levels before October if selling pressure persists.
The target falls in the support range that analyst Michaël van de Poppe highlights.
In his Tuesday post , the chartist discusses the prospects of the ETH price falling inside the $3,550-$3,750 area, noting the 20-week exponential moving average (20-week EMA; the blue wave in the chart below) at around $3,685.
“Compression is building up --> Big move to occur at a later time,” Poppe says, adding:
“It’s now down nearly 20% from the high, not a bad spot to be accumulating your first positions.”
The bulls have one line of defense despite the triangle breakdown setup.
ETH is hovering near a rising trendline that has underpinned its uptrend since April, and preceded 90%-125% rallies.
A bounce from the trendline, followed by a decisive close above the 50-day exponential moving average (50-day EMA; the red wave) near $4,250, could trigger an extended recovery toward the triangle’s upper trendline, aligning with the $4,600-$4,700 range.
Ethereum rebound could extend to $7,000
Bouncing from the ascending trendline support increases Ether’s odds of hitting a new record high at $7,000, according to a separate analysis shared by Crypto GEMs .
The outlook is based on the Wyckoff Accumulation method, which suggests ETH had already completed its “spring” and “test” phases earlier this year.
These phases typically mark the end of a bearish cycle and the beginning of a sustained markup.
In this framework, Ethereum’s recent decline represents the “Last Point of Support” (LPS), a healthy retest of a former resistance level before price resumes higher.
The setup puts ETH on course for a breakout rally targeting the $7,000 area if validated.
Related: ETHZilla unleashes fresh $350M war chest for Ethereum bets
That means at least 65% gains by 2025’s end, echoing several other ETH price targets shared by analysts earlier this year.
