Ethereum (ETH) Price To Fall $950–$1,900 by October 2022! Here’s Why

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In a higher interest rate environment, Ethereum’s native cryptocurrency, Ether (ETH), continues to suffer downside risks. However, one analyst believes that the token’s next selloff could turn into a bear trap as the market anticipates the Merge’s release in August.

According to a technical setup released on May 20 by Wolf, an independent market expert, Ether’s price might reach $4,000 before the end of 2022.

The analyst predicted that ETH would move within a multi-month ascending triangle pattern with a horizontal trendline resistance and rising trendline support.

Notably, ETH’s recent retest of the structure’s lower trendline may signal the start of a large comeback toward the structure’s higher trendline, which is currently around $4,000.

Wolf got his bullish inspiration from a similar triangle formation from 2016, which preceded a massive bull run from $1 to $27. Another ascending triangle formed in 2017 was followed by a bullish follow-up, with ETH/USD rising 270 percent to over $1,500. 

Reasons behind the bearish outlook 

Preston Van Loon, one of the Ethereum core developers, stated that the blockchain project’s much-anticipated upgrade to a proof-of-stake consensus mechanism would take place sometime in August.

Wolf speculated that Ethereum was preparing a “bear trap,” which would make sense prior to the update and would complement his technological setup, as explained above.

Bear trap few months from the #merge makes sense. $ETH

— Wolf (@IamCryptoWolf) May 20, 2022

The impending update was one of the main drivers of Ether’s price rise in 2021, as many investors expected it to solve the Ethereum blockchain’s long-standing scalability problem while lowering transaction and gas costs. Despite this, the Ethereum Foundation continued to postpone the launch.

Unquestionably, this lack of progress has played a big influence in Ethereum’s recent price slide, Bitfreedom Research, a tech-stock and crypto research firm, said in a report forecasting ETH’s price to fall to $950–$1,900 by October 2022. 

Higher interest rates were mentioned as the primary cause for the firm’s pessimistic perspective on Ethereum, noting:

Because the crypto market is so volatile, crypto startups require a large amount of cash to fuel quick growth. With no currency available, Ethereum’s ERC20-token economy may enter a downward spiral, it said.