Ethereum is trading near its yearly low of $2,400 after an 18% decline from local highs. ETH has clearly underperformed against Bitcoin and other altcoins like Solana this cycle, raising concerns among investors.

One of the main reasons for this destitute performance is the lack of enthusiasm around Ethereum ETFs. The indicators of these funds show low interest from customary investors, which contributes 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 rebound is on the horizon. Top analysts and investors have begun sharing their views on ETH’s next move, with many suggesting that a rebound could occur if certain technical levels hold. If this rebound materializes, it could take some of the pressure off Ethereum, but until then, the market remains cautious.

Ethereum price action suggests a rebound

Ethereum is currently trading at a critical level that could fuel another massive move if it holds support. Top analyst and investor Mags shared analysis on Xrevealing that ETH has been consolidating within a powerful triangle formation since 2021.

According to Mags, Ethereum is currently approaching the lower boundary of this formation, which is a key support level that could define its next significant move. Mags predicts a potential double bottom pattern forming near this upward sloping trendline, indicating that a bullish reversal could be on the horizon.

Recently, the price tested the key demand zone at $2,307, showing the first signs of recovery. This level is necessary for Ethereum price action, as holding above it could signal strength and create a basis for an upward move.

Analysis suggests that the next target for ETH could be recent all-time highs if it manages to break out of the triangle, contradicting the bearish expectations of many traders still waiting for lower prices.

This potential bullish scenario could play out if Ethereum price holds onto the lower boundary of the triangle and gains upward momentum. A breakout would send ETH higher, surpassing current market sentiment and surprising investors.

ETH above $2,300

Ethereum (ETH) is currently trading at $2,396 after intense volatility and market uncertainty. The price is in a consolidation phase that could still be prone to a surprise pullback if demand weakens even further. ETH is currently trading below the 4-hour 200-day moving average (MA) at $2,596, which is approaching the key $2,600 level.

This level is necessary for ETH to reclaim if it intends to push higher in the compact term. A sustained trade below these levels signals weakness and the potential for further declines.

For bulls, reclaiming the $2,600 level is necessary to changing the price structure and initiating a recent uptrend. Success in breaking through this level could set the stage for targeting the local high of $2,820.

However, if ETH fails to close above $2,600, the next significant support is expected to be around $2,116. Price action in the coming days will be crucial in determining ETH’s next move, with traders keeping a close eye out for signals of a breakout or a deeper correction.

Featured image is from Dall-E, chart is from TradingView