Will Ethereum Bounce Back? Crypto Analysts Discuss Potential Price Recovery
Will Ethereum Bounce Back? Crypto Analysts Discuss Potential Price Recovery In the past week, Ethereum (ETH) has dropped 9.3%, falling from $3,630 on January 3 to $3,235 at the time of writing. While ETH is striving to defend the psychologically significant support level at $3,000, some crypto analysts remain confident that the digital asset’s long-term price trajectory is bullish. Can Ethereum Recover? Analysts Weigh In While the current crypto bull market saw Bitcoin (BTC) create multiple historical new all-time highs (ATH), Ethereum’s price action remained relatively muted. Notably, ETH’s ATH of $4,878 recorded in November 2021 remains intact. However, ETH’s subpar price action during the current market cycle has not dampened crypto analysts’ hopes for a bullish trend reversal. For instance, several analysts are closely monitoring the inverse head-and-shoulders pattern forming on the 3-day Ethereum chart. While a standard head-and-shoulders pattern is typically bearish, an inverse head-and-shoulders pattern is considered bullish, signaling a potential reversal in the asset’s price trend. Analyst MikyBull recently highlighted this formation in a post on X. Source: Mikybull on XCrypto analyst Wolf, corroborated MikyBull’s bullish prediction. In their analysis, Wolf highlighted that a successful completion of an inverse head-and-shoulders pattern could propel ETH to as high as $7,200. Seasoned cryptocurrency analyst Ali Martinez added that a downswing to $2,900 would be “very bullish for Ethereum,” creating an excellent buying opportunity before ETH climbs to new ATHs. Martinez further noted that if ETH continues to follow its ascending parallel channel, a dip to $2,800 could provide a solid foundation for the next upward move. Source: Ali_charts on XMeanwhile, cryptocurrency and forex trader Merlijn The Trader identified a bullish Moving Average Convergence Divergence (MACD) signal on Ethereum’s 4-hour chart. This indicates that momentum could be shifting from bearish to bullish. According to Merlijn, this momentum shift might push ETH to the $3,700 price level. Source: Merlijn The Trader on XWill ETH Hit A New ATH In 2025? At the time of writing, ETH is trading approximately 33% below its ATH price. However, the rising institutional interest in the digital asset – particularly after the US Securities and Exchange Commission (SEC) approved spot ETH exchange-traded funds (ETF) – could provide ETH the required momentum to eye new ATH. A recent report by Steno Research predicted that ETH is poised to outperform BTC in 2025, with price projections as high as $8,000. However, not all are convinced of a bullish 2025 for ETH. To conclude, Ethereum must first surpass the critical resistance level at $4,000 before it can set its sights on achieving new ATHs. At press time, ETH is trading at $3,235, up 0.1% in the past 24 hours. ETH trades at $3,235 on the daily chart | Source: ETHUSDT on TradingView.comFeatured image from Unsplash, Charts from X and TradingView.com Ash Tiwari Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand. Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance. In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects. A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution. When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights. Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries. Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.