Ethereum (ETH) has seen a correction of over 10% from Fresh Year’s highs amid a market pullback, recently falling below the $3,300 support level. Despite the continued slowdown, some analysts remain positive about ETH’s first-quarter performance, suggesting that fresh highs are just around the corner.

Ethereum is forming a bullish pattern

Ethereum gave up its Fresh Year’s gains today after falling below the $3,320 level. Following a market correction, the second-largest cryptocurrency by market capitalization saw a 14% decline from Monday’s high of $3,744 to below support at $3,300.

During the early-year rally, the price of ETH rose 20% from correctional lows, climbing to pre-reversal levels for the first time in almost three weeks. However, a market pullback that sent Bitcoin down 7.2% in 24 hours sent Ethereum to $3,210 on Thursday morning. The $3,200 to $3,300 price range was a key support zone for ETH throughout December.

Following the recent results, several analysts have suggested that the cryptocurrency is forming an vital reversal pattern that could push the ETH price to fresh highs. On Wednesday, cryptocurrency analyst Rekt Capital excellent that Ethereum is forming a multi-month inverse head and shoulders pattern on a 1M time horizon.

To the analyst, it is “clear” that the $3,650-$3,760 area is “a major resistance area developing just below $4,000, with price creating this resistance at a lower level that could act as the neck line of the pattern.”

He stated that “its endpoint is at the psychological level of $3,000,” adding that “any pullback near the $3,000 level could result in Ethereum developing a right shoulder.”

Similarly, Ethereum Ace fell to the low of the key $3,200 range, Miky Bull highlighted the same pattern, suggesting that the $7,000 goal is “getting closer.” According to the chart, ETH price may raise by 87.53% near the $7,400-$7,500 price range, based on a bullish setup.

No more “major retracements” for ETH?

Cryptocurrency analyst Ali Martinez, too common his view on the bullish pattern, stating that a drop to $2,900 “will be very bullish” for ETH. The analyst argued that this would create an “excellent buying opportunity at the $7,000 price target next!”

However, it is worth noting that the bullish pattern will be invalidated if Ethereum falls below $2,800, where the left shoulder has formed.

Meanwhile, another market observer common similarities between ETH’s performance in early 2024 and 2025, highlighting the altcoin king’s value falling below its yearly opening in January 2024 and then rising the following month.

He stated: “I think it’s really important not to associate a few days of red price action with a big timeframe deviation. I firmly believe this is an annual open shakeout where some overly eager participants raised too much too soon. I am very optimistic about the first half of 2025.”

Crypto Wolf analyst thinks there will likely be “little to no declines” left, which suggests ETH could retreat another 4-7% high before reaching an all-time high (ATH).

At the time of writing, ETH is trading at $3,255, down 2.15% on the daily time frame.

Featured image from Unsplash.com, chart from TradingView.com