The price of Ethereum fell 13% between December 14 and 16, 2022, signaling the end of a volatile period.
This drop was swiftly followed by a soaring attempt at recovery, which resulted in a consolidation of higher highs and higher lows.
This price movement for ETH between December 14, 2022 and January 4, 2023 has resulted in the development of a bearish flag.
While the initial 13% drop is known as the flagpole, the subsequent tight consolidation is known as the flag. By adding the flagpole’s height to the breakout point, this technical formation for Ethereum price anticipates a 13% decrease to $1,050.
Although ETH has not yet broken through the flag, investors should expect it to happen around $1,205.
As an example, a four-hour candlestick A closure in the Ethereum price below the mentioned level will signal the beginning of a decline for ETH holders.
In this situation, the smart contract token might sweep the equal lows at $1,071 and call it a day. In the event of a severely unfavorable forecast, Ethereum price may continue to fall and retest the theoretical target of $1,050.
If, on the other hand, Ethereum price delivers a four-hour candlestick close over $1,266, it will have surpassed the flag’s upper limit, rendering the bearish view meaningless.
This news could spark a bullish trend, propelling ETH to the same highs of $1,350.
