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ethereum is trading near its yearly low of $2,400 after an 18% drop from local highs. eth has notably underperformed bitcoin and other altcoins like Solana in this cycle, raising concerns among investors.
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One of the main reasons for this poor performance is the lack of enthusiasm around ethereum ETFs. Metrics for these funds show low interest from traditional investors, adding to the bearish sentiment around eth.
As the cryptocurrency market is gripped by fear and uncertainty, ethereum traders are looking for clues as to whether a potential recovery is on the horizon. Top analysts and investors have started sharing their views on eth’s next move, with many suggesting that a rally could be in store if certain technical levels hold. If this rally materializes, it may bring relief to ethereum, but until then, the market remains cautious.
ethereum price action suggests a rally
ethereum is currently trading at a critical level that could fuel the next big move if it holds support. Prominent analyst and investor Mags has shared a x.com/thescalpingpro/status/1830870847571030472″ target=”_blank” rel=”nofollow”>analysis on xrevealing that eth has been consolidating within a massive triangle formation since 2021.
According to Mags, ethereum is now approaching the lower boundary of this formation, which is a crucial support level that could define its next significant move. Mags anticipates a potential double bottom pattern to form near this ascending trend line, indicating that a bullish reversal may be on the horizon.
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Recently, the price tested a key demand zone at $2,307, showing initial signs of recovery. This level is essential for ethereum’s price action as a hold above it could signal strength and create the basis for a bullish move.
Analysis suggests that the next target for eth could be new all-time highs if it breaks out of the triangle pattern, defying the bearish expectations of many traders who are still expecting lower prices.
This potential bullish scenario could play out if ethereum price holds at the lower boundary of the triangle and gains upward momentum. A breakout would send eth towards higher levels, overcoming the current market sentiment and surprising investors.
eth remains above $2300
ethereum (eth) is currently trading at $2,396 amid intense volatility and uncertainty in the market. The price is in a consolidation phase, which could still be susceptible to an unexpected pullback if demand weakens further. Currently, eth is trading below the 200-year 4-hour moving average (MA) at $2,596, lining up with the crucial $2,600 level.
This level is vital for eth to retake if it intends to rise in the near term. A sustained trading position below these levels indicates weakness and the possibility of further declines.
For the bulls, reclaiming the $2,600 mark is essential to change the price structure and start a new uptrend. Success in overcoming this level could pave the way for targeting the local high of $2,820.
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However, if eth fails to close above $2,600, the next significant support is anticipated to be around $2,116. Price action over the next few days will be critical in determining eth’s next move, and traders will be on the lookout for signs of a breakout or deeper pullback.
Featured image of Dall-E, chart from TradingView
