Like Bitcoin, Ethereum has faced significant challenges in recent months, struggling to sustain any significant price growth. After peaking above $4,000 in March, Ethereum has fallen steadily, unable to break out of this bearish trend.
The second-largest cryptocurrency by market capitalization has seen its price drop by over 5.9% over the past two weeks so far and is still hovering around $2,400. Currently trading at $2,434, Ethereum is down 2.4% over the past week and 0.4% over the past 24 hours.
Is a rebound to $4,000 just around the corner?
Despite this decline, market analysts remain sanguine about a potential recovery. According to a recent fasting According to “The Moon” on X, Ethereum could be poised to return to $4,000 — if certain technical conditions are met.
Specifically, The Moon highlighted Ethereum’s current 1D Falling Wedge formation, a common chart pattern in technical analysis that often indicates a potential reversal. The analyst stated, “Once the breakout occurs, there is a high probability that Ethereum will return to $4k.”
By comparison, in technical analysis, a falling wedge is a pattern where the asset price is moving in a downtrend but within a narrowing range.
This pattern usually suggests that the downside momentum is fading, and if the price breaks above the wedge, a reversal could occur. This is exactly what The Moon is predicting for Ethereum — a potential breakout could lead to a return to previous highs.
Ethereum is experiencing an boost in bullish sentiment
Meanwhile, other analysts in the cryptocurrency community have shared similarly sanguine views on Ethereum’s future performance. Renowned cryptocurrency analyst Crypto Jack has he pointed out that Ethereum price is approaching a key long-term support level.
Jack said a bounce from $2,200 could signal a forceful reversal and potentially lead to an uptrend. This long-term support level could be key for Ethereum as it tries to regain momentum after weeks of sluggish performance.
Price $ETH approaching long-term support.
An boost of $2.2k #Ethereum could be exceptionally bullish. photo: twitter.com/pepeDZm5FA
— CryptoJack (@cryptojack) September 4, 2024
Also contributing to the sanguine outlook is cryptocurrency analyst Mags, who recently excellent on X that Ethereum is currently moving within a huge triangle.
According to Mags, this formation, combined with the possibility of a double bottom forming near the ascending trendline, could be a signal that Ethereum is poised for a significant upside move.
A double bottom occurs when an asset makes two lows at roughly the same price level, indicating forceful support and the potential for a reversal in the uptrend.
Featured image created with DALL-E, chart from TradingView
