Ethereum price risks dropping to $2K on 'bear flag' setup

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Ethereum price risks dropping to $2K on 'bear flag' setup
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Is Ethereum price in danger? A bearish chart pattern similar to early December is emerging.

) will extend its 30% slump this year to the lowest price level since July 2021, if a textbook technical indicator plays out.ETH's price fell to its six-month low of $2,159 on Jan. 24, 2022, only to rebound sharply to as high as $2,724 days later. However, this created a so-called"" chart pattern that suggests the price could drop to $2,000 or a 17% drop from current levels.

A bear flag appears on the chart when the price consolidates higher after a strong momentum downwards but eventually moves further lower after breaking out of the upward range. In doing so, the price tends to drop by as much as the length of the previous decline, called"flagpole."In Ether's case, the flagpole's height comes to be over $850. That roughly shifts its bear flag price target towards $2,000.

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