Ethereum’s Plunge Could Be Over: This Key Pattern Signals A Rally Back To $4,000
September 05 2024 - 4:00AM
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Much like Bitcoin, Ethereum has faced significant challenges in
recent months, struggling to sustain any major price rally. After
reaching a peak of over $4,000 in March, Ethereum has been
consistently declining, failing to break out of this bearish trend.
So far, the second-largest cryptocurrency by market cap has seen
its price drop by over 5.9% in the past two weeks, and it continues
to hover around the $2,400 mark. Currently trading at $2,434,
Ethereum has fallen 2.4% in the last week and 0.4% in the last 24
hours. Related Reading: Is Ethereum Headed For Trouble? Analyst
Warns Of Surging Exchange Reserves Is A Rebound To $4,000 Around
The Corner? Despite this downturn, market analysts remain
optimistic about a potential turnaround. According to a recent post
by ‘The Moon’ on X, Ethereum might be primed to rally back to
$4,000—if certain technical conditions are met. Particularly, The
Moon highlighted Ethereum’s current 1D Falling Wedge formation, a
common chart pattern in technical analysis often indicating a
potential reversal. The analyst stated, “Once a breakout occurs,
there’s a strong possibility Ethereum could rise back to $4K.” For
context, a falling wedge in technical analysis is a pattern where
the price of an asset is in a downtrend but within a narrowing
range. This pattern usually suggests that downward momentum is
weakening, and once the price breaks above the wedge, a reversal
could occur. This is what The Moon predicts for Ethereum—a
potential breakout could lead to a surge back to previous highs.
Ethereum Experiencing Rise In Bullish Sentiments Meanwhile, other
analysts in the crypto community have shared similar bullish
sentiments about Ethereum’s future performance. Renowned crypto
analyst Crypto Jack has pointed out that Ethereum’s price is
nearing a key long-term support level. Jack said a bounce from
$2,200 could signal 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 is approaching long term support. A
bounce from $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 inside a
massive triangle pattern. Related Reading: Is Ethereum’s Price
Under Pressure? Here Is What Futures Data Signals According to
Mags, this formation, combined with the possibility of a double
bottom near the upward-sloping trendline, could signal that
Ethereum is poised for a significant upward move. A double bottom
occurs when an asset forms two low points at roughly the same price
level, indicating strong support and the potential for a bullish
reversal. Featured image created with DALL-E, Chart from
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