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Last week, ethereum (eth) fell 9.3%, going from $3,630 on January 3 to $3,235 at the time of writing. While eth struggles to defend the psychologically significant support level of $3,000, some crypto analysts remain confident that the digital asset's long-term price trajectory is bullish.
Can ethereum be recovered? Analysts say
While the current cryptocurrency bull market saw bitcoin (btc) create multiple new all-time highs (ATHs), ethereum price action remained relatively quiet. Notably, eth's ATH of $4,878 recorded in November 2021 remains intact.
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However, eth's poor price action during the current market cycle has not dampened crypto analysts' hopes for a bullish trend reversal. For example, several analysts are closely following the inverse head and shoulders pattern forming on the ethereum 3-day chart.
While a standard head and shoulders pattern is usually bearish, an inverse head and shoulders pattern is considered bullish, indicating a possible reversal in the asset's price trend. Analyst MikyBull recently highlighted this formation in a post on x.
Cryptoanalyst Wolf corroborated MikyBull's bullish prediction. In his analysis, Wolf <a target="_blank" href="https://x.com/IamCryptoWolf/status/1877630716722172402/photo/1″ target=”_blank” rel=”nofollow”>highlighted that a successful completion of an inverse head and shoulders pattern could push eth as high as $7,200.
Seasoned 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 further noted that if eth continues to follow its ascending 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 and 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 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 approximately 33% below its ATH price. However, the growing Institutional interest in the digital asset, particularly after the US Securities and Exchange Commission (SEC) approved eth spot exchange-traded funds (ETFs), could give eth the boost needed to eye new ATH.
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A recent report from Steno Research provided that eth is poised to surpass btc in 2025, with price projections as high as $8,000. However, <a target="_blank" href="https://x.com/RenegadeAnalyst/status/1877499078449443267″ target=”_blank” rel=”nofollow”>No everyone is convinced of a bullish 2025 for eth.
To conclude, ethereum must first get over 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 last 24 hours.
Featured image from Unsplash, x Charts and TradingView.com
