The price action of Ethereum has been disappointing to traders recently, as it has not met their expectations. Ethereum is currently experiencing a downward trend, with its price decreasing by 23% over the past month. This decline has dashed the hopes of many ETH investors who were expecting a bullish surge after the launch of Spot Ethereum ETFs.
Despite the current concerns about Ethereum’s price, a closer look at its historical performance reveals that the current situation may not be as unusual as it seems. Popular crypto analyst Benjamin Cowen has been analyzing Ethereum’s price action and has noted that its performance in 2024 closely resembles that of 2016 when viewed on the monthly candlestick chart. This pattern of repetition has been consistent throughout the year, with Ethereum closing monthly candlesticks in a similar way to 2016 for eight consecutive months.
If Ethereum continues to follow the pattern observed in 2016, investors could anticipate a green monthly close in September, followed by three consecutive bearish months from October to December. However, if the repetition of this price action pattern persists beyond December 2024, Ethereum could potentially embark on a significant price rally surpassing its current all-time high. This would be welcome news for Ethereum bulls who have been eagerly awaiting a profitable outcome.
As of the latest data, Ethereum is trading at $2,445, representing a decline of 10.85% over the past week and 23% over the past month. Despite the bearish trend, there is still some hope for Ethereum bulls as the cryptocurrency is hovering around a critical support level near the 0.382 Fibonacci retracement level, slightly above $2,400. A strong bounce from this support level could signal the beginning of an upward trend, potentially leading to a close above the monthly open by the end of September.
If Ethereum manages to surge above $3,000 and reach $4,000, and subsequently $5,000, it could indicate a bullish turnaround for the cryptocurrency. This potential price movement aligns with the historical pattern observed in 2016, where Ethereum eventually experienced a massive 19,000% rally, reaching $1,590 for the first time.
While the current price action of Ethereum might be disappointing to some traders, a closer analysis of its historical performance suggests that there could be a silver lining on the horizon. By closely monitoring the price movements and support levels, investors can potentially anticipate a turnaround in Ethereum’s price trajectory in the coming months.
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