Like Bitcoin, Ethereum has faced significant challenges in recent months and struggled to sustain a major price increase. After peaking above $4,000 in March, Ethereum has continued to decline and has failed to break this bearish trend.
So far, the second-largest cryptocurrency by market capitalization has seen its price fall by more than 5.9% over the past two weeks, remaining 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 recovery to $4,000 on the horizon?
Despite this downturn, market analysts remain optimistic about a possible turnaround. According to a recent after by ‘The Moon’ on
In particular, The Moon highlighted Ethereum’s current 1D Falling Wedge formation, a common chart pattern in technical analysis that often signals a possible reversal. The analyst stated: “Once a breakout occurs, there is a good chance that Ethereum could rise again to $4K.”
For context, a falling wedge in technical analysis is a pattern where the price of an asset is in a downward trend, but within a narrower range.
This pattern generally suggests that downside momentum is weakening, and once the price breaks above the wedge, a reversal could occur. Here’s what The Moon predicts for Ethereum: A possible breakout could lead to a return to previous highs.
Ethereum is experiencing a rise in bullish sentiments
Meanwhile, other analysts in the crypto community have shared similar positive sentiments about Ethereum’s future performance. Renowned crypto analyst Crypto Jack has pointed out that Ethereum’s price is approaching a key long-term support level.
Jack said a rebound from $2,200 could mark a strong reversal and potentially lead to a bullish trend. This long-term support level could be crucial for Ethereum as it tries to regain momentum after weeks of sluggish performance.
The price of $ETH approaching long-term support.
A jump of $2.2k for #Ethereum could be extremely bullish. pic.twitter.com/pepeDZm5FA
— CryptoJack (@cryptojack) September 4, 2024
Adding to the bullish outlook is crypto analyst Mags, who recently noted on X that Ethereum is currently trading within a huge triangle pattern.
According to Mags, this formation, combined with the possibility of a double bottom near the uptrend line, could be a signal that Ethereum is poised for significant upside.
A double bottom occurs when an asset makes two lows at approximately the same price level, indicating strong support and the possibility of a bullish reversal.
Featured image created with DALL-E, Chart from TradingView
