The downtrend in ETH price is not over yet; The descending triangle pattern could herald a major sell-off of 30% to $1,140 before the next rally above $2,000.

Ethereum, like its top ten competitors, is struggling to chart its way out of the August sell-off that saw ETH price drop to $1,580. The second-largest crypto is hovering above a slightly higher support at $1,630 after a failed recovery attempt above $1,700 last week.
ETH price in critical zone
Ethereum has maintained an overall downtrend since its last bull run, reaching $4,878 in November 2021. There have been moments this crypto winter when the ETH price tried to reverse the trend, such as the rally in January and April 2023.
Although the bulls rallied behind ETH in June, resulting in a rally to $2,000, the lack of momentum caused the altcoin to bounce back to support between $1,600 and $1,630.
Profit booking could begin as Ethereum drops to potential support areas at $1,400 and $1,200. However, the triangle pattern reflects a 30% drop from the axis to $1,140; which represents the predicted pattern height below the breakout point.
In Ethereum's case, a death cross is forming where a short-term moving average such as the 50-day EMA (red) falls below a longer-term moving average such as the 200-day EMA (blue).
However, it is important to trade carefully keeping in mind a possible buy signal that could come from the Moving Average Convergence Divergence (MACD) indicator. If the blue MACD line completes the turn above the red signal line, ETH price could soon be on the recovery path targeting $2,000.
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