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Ethereum (ETH) has seen a correction of more than 10% from its new year highs amid the market decline, and recently fell below the $3,300 support level. Despite the ongoing decline, some analysts remain optimistic about ETH’s performance in the first quarter, suggesting that new highs are near.
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Ethereum is forming a bullish pattern
Ethereum broke its new year’s gains today after falling below the $3,320 level. Following the market correction, the second-largest cryptocurrency by market cap saw a 14% decline from Monday’s high of $3,744 to below the support level of $3,300.
During the early-year rally, Ethereum price recovered 20% from the correction lows, rising to pre-trace levels for the first time in nearly three weeks. However, the market pullback, which saw Bitcoin fall 7.2% in 24 hours, sent Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a major support area for ETH throughout December.
Following its recent performance, many analysts have indicated that the cryptocurrency is forming an important reversal pattern, which could send the price of ETH to new highs. On Wednesday, cryptocurrency analyst Rekt Capital said male Ethereum is forming an inverse head and shoulders pattern for several months in the 1M time frame.
For the analyst, it is “clear” that the $3,650-$3,760 area is “a major resistance area, developing just below $4,000, with the price forming that resistance at a lower high which could serve as a neckline for the pattern.”
“The end point is at the psychological level of $3,000,” he stated, adding that “any pullback near the $3,000 level could lead to Ethereum developing a right shoulder.”
Likewise, with Ethereum falling to the bottom of the key $3,200 range, Mickey Bull Highlight Same pattern, suggesting that the $7,000 target is “on the horizon.” According to the chart, ETH price could see an 87.53% increase near the $7,400 to $7,500 price range, based on a bullish setup.
No more “major corrections” for ETH?
Cryptocurrency analyst Ali Martinez as well subscriber His view on the bullish pattern, stressing that a drop to $2,900 “would be very bullish” for ETH. The analyst said this would create “an excellent opportunity to buy the dip to target the $7,000 level next!”
However, it should be noted that the bullish pattern will be invalidated if the Ethereum price drops below $2,800, where the left shoulder forms.
Meanwhile, another market watcher subscriber Similarities between ETH’s performance at the start of 2024 and 2025, highlighting the altcoin king falling below its yearly open during January 2024 before rallying the following month.
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“I think it’s really important not to confuse a few days of red price action with a high time frame bias,” he said. “I’m a firm believer that this is a year-over-year open change after some very enthusiastic participants raised very large amounts, very early. “Very optimistic about the first half of 2025.”
Wolf cryptoanalyst It is considered There is likely to be “little to no downside remaining,” suggesting that ETH could decline a maximum of 4% to 7% before targeting all-time highs (ATH).
As of this writing, ETH is trading at $3,255, down 2.15% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
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