Will Ethereum bounce back? Cryptocurrency Analysts Discuss Possible Price Recovery — TradingView News

In the past week, Ethereum (ETH) has fallen by 9.3%, falling from $3,630 on January 3 to $3,235 at the time of writing. While ETH is striving to defend the important psychological support level at $3,000, some cryptocurrency analysts remain confident that the digital asset’s long-term price trajectory is bullish.

Can Ethereum recover? Analysts weigh in

While the current cryptocurrency bull market has seen Bitcoin (BTC) create several new all-time highs (ATH), Ethereum’s price action has remained relatively muted. Notably, ETH’s ATH price of $4,878 recorded in November 2021 remains intact.

However, ETH’s subpar price action during the current market cycle has not dampened cryptocurrency analysts’ hopes for an upside reversal. For example, many analysts are closely monitoring the formation of an inverse head and shoulders pattern on the Ethereum three-day chart.

While the standard head and shoulders pattern is usually bearish, the inverse head and shoulders pattern is considered bullish, indicating a potential reversal in the direction of the asset’s price. Analyst MikyBull recently highlighted this formation in a post on X.

Cryptocurrency analyst Wolf confirmed MikyBull’s bullish forecast. In their analysis, Wolf highlighted that the successful completion of a reversal head and shoulders pattern could push ETH as high as $7,200.

Veteran cryptocurrency analyst Ali Martinez added that a drop to $2,900 would be “very bullish for Ethereum,” creating an excellent buying opportunity before ETH rises to new ATHs. Martinez also noted that if ETH continues to follow its bullish parallel channel, a drop to $2,800 could provide a solid foundation for the next upward move.

Meanwhile, cryptocurrency and forex trader Merlijn The Trader identified a bullish Moving Average Convergence Divergence (MACD) signal on the Ethereum 4-hour chart. This indicates that momentum may shift from bearish to bullish. According to Merlin, this shift in momentum could push ETH to the $3,700 price level.

Will ETH reach a new ATH in 2025?

At the time of writing, ETH is trading around 33% below the price of ATH. However, growing institutional interest in digital assets – especially following the US Securities and Exchange Commission’s (SEC) approval of exchange-traded funds (ETFs) – could provide ETH with the momentum needed to aspire a new ATH.

A recent report from Steno Research predicts that ETH is poised to overtake BTC in 2025, with price forecasts reaching $8,000. However, not everyone is convinced about 2025’s bull year for ETH.

In conclusion, Ethereum must first clear the critical resistance level at $4,000 before it can set its sights on achieving new ATHs. At press time, Ethereum is trading at $3,235, up 0.1% over the past 24 hours.