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Ethereum is trading near its yearly low of $2,400 after an 18% drop from its local high. Ethereum has significantly underperformed Bitcoin and other altcoins like Solana during this cycle, raising concerns among investors.
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One of the main reasons for this poor performance is the lack of enthusiasm surrounding Ethereum ETFs. Metrics from these funds show low interest from traditional investors, adding to the negative sentiment around Ethereum.
With fear and uncertainty gripping the cryptocurrency market, Ethereum traders are looking for clues as to whether a potential recovery is on the horizon. Leading analysts and investors have begun sharing their views on what’s next for Ethereum, with many suggesting that a bounce could happen if certain technical levels hold. If such a bounce happens, it could provide some relief to Ethereum, but until then, the market remains cautious.
Ethereum price action indicates a bounce
Ethereum is currently trading at a critical level that could trigger the next big move if it holds support. Prominent analyst and investor Mags shared: Analysis on Xrevealing that ETH has been consolidating inside a massive triangle formation since 2021.
According to Maggs, Ethereum is now approaching the lower bound of this formation, a crucial support level that could determine its next big move. Maggs expects a potential double bottom pattern to form near this uptrend line, suggesting that a bullish reversal could be on the horizon.
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Recently, the price tested a key demand area at $2,307, showing early signs of recovery. This level is crucial for Ethereum price action, as holding above it could signal strength and create the basis for a move higher.
Analysis suggests that ETH’s next target could be new highs if it breaks out of the triangle pattern, defying the bearish expectations of many traders who are still waiting for the price to drop.
This potential bullish scenario could unfold if Ethereum price holds the lower bound of the triangle and gains upward momentum. A breakout would send Ethereum higher, outperforming the current market sentiment and surprising investors.
ETH price stabilizes above $2300
Ethereum (ETH) is currently trading at $2,396 after experiencing extreme volatility and market uncertainty. The price is in a consolidation phase, which could still be vulnerable to a sudden pullback if demand weakens further. Currently, ETH is trading below the 4-hour moving average (MA) at $2,596, which is in line with the crucial $2,600 level.
This level is vital for ETH to recover if it aims to rise in the near term. A sustained trading position below these levels indicates weakness and the possibility of further declines.
For bulls, a reclaim of the $2,600 level is essential to change the price structure and start a new uptrend. A successful push through this level could pave the way for a target of the local high at $2,820.
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However, if Ethereum fails to close above $2,600, it is expected to face the next major support at $2,116. The price action in the coming days will be crucial in determining Ethereum’s next move, with traders closely watching for signs of either a breakout or a deeper pullback.
Featured image by Dall-E, chart by TradingView