In recent days, Ethereum (ETH) has experienced a significant decline, dropping 9.3% from $3,630 on January 3 to $3,235 at the time of writing. Despite this downturn, there remains a glimmer of hope among crypto analysts who believe in the digital asset’s potential for a bullish comeback in the long term.
Can Ethereum Recover? Insights from Analysts
Unlike Bitcoin (BTC), which has reached several new all-time highs (ATH) during the ongoing crypto bull market, Ethereum’s price action has been relatively subdued. The ATH of $4,878 achieved in November 2021 remains a distant memory as ETH struggles to regain its footing.
However, the current lackluster performance of ETH hasn’t deterred analysts from anticipating a positive trend reversal. A significant pattern catching the attention of several analysts is the inverse head-and-shoulders formation seen on the 3-day Ethereum chart. While a standard head-and-shoulders pattern typically indicates bearish trends, its inverse counterpart is regarded as a bullish signal, suggesting a potential reversal in price trends.
Renowned analyst MikyBull recently brought attention to this pattern on social media, sparking discussions among the crypto community. Supporting MikyBull’s viewpoint, analyst Wolf suggested that a successful execution of this pattern might propel ETH to impressive heights, possibly reaching up to $7,200.
Potential Buying Opportunities
Ali Martinez, a seasoned cryptocurrency analyst, shared his perspective that a dip to $2,900 could present a “very bullish” scenario for Ethereum, offering an attractive buying opportunity before ETH embarks on a journey to new ATHs. He further emphasized that if ETH adheres to its ascending parallel channel, a dip to $2,800 might lay the groundwork for a substantial upward move.
Meanwhile, cryptocurrency and forex trader Merlijn The Trader identified a bullish Moving Average Convergence Divergence (MACD) signal on Ethereum’s 4-hour chart, indicating a possible shift in momentum from bearish to bullish. According to Merlijn, this momentum shift could potentially drive ETH to the $3,700 level.
Will ETH Reach A New ATH In 2025?
Currently, ETH is trading approximately 33% below its ATH. However, the increasing institutional interest in the digital asset, particularly following the U.S. Securities and Exchange Commission’s (SEC) approval of spot ETH exchange-traded funds (ETF), could provide the necessary momentum for ETH to aim for new ATHs.
A report by Steno Research recently projected that ETH could outperform BTC in 2025, with price estimates soaring as high as $8,000. However, not everyone shares this optimistic outlook for 2025.
Crucial Resistance Levels
For Ethereum to embark on a path to new ATHs, it must first surpass the critical resistance level at $4,000. As of now, ETH is trading at $3,235, showing a modest increase of 0.1% over the past 24 hours.
In conclusion, while the road to recovery may seem challenging, Ethereum’s potential for a bullish reversal remains a topic of significant interest among crypto analysts and enthusiasts alike. As ETH navigates through these turbulent times, the market will be closely watching for any signs of a promising comeback.
