Ethereum (ETH) has seen a more than 10% correction from New Year's highs amid a market rally, recently falling below the $3,300 support. Despite the ongoing pullback, some analysts remain optimistic about ETH's Q1 performance, suggesting that new highs are around the corner.
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Ethereum Forms Bullish Pattern
Ethereum stripped the New Year is getting today after falling below the $3,320 mark. After the market discovery, the second largest cryptocurrency by market capitalization saw a 14% drop from its Monday high of $3,744 to below the $3,300 support.
During the rally at the beginning of the year, the price of ETH has been recovered 20% from correction levels, rising to pre-recovery levels for the first time in almost three weeks. However, the market pullback, which saw Bitcoin down 7.2% in 24 hours, pushed Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range was a key support area for ETH throughout December.
After its recent performance, several analysts have suggested that the cryptocurrency is creating an important reversal pattern, which could send the price of ETH to new heights. On Wednesday, crypto analyst Rekt Capital said was noted that Ethereum is forming a multi-month Head and Shoulders pattern within the 1M time frame.
For the analyst, “it is clear” that the $3,650-$3,760 area “is a key area of resistance, developing just below the $4,000, with price creating that resistance at a High Low that could be the neck of the pattern. “
He said that “its endpoint is at the psychological level of $3,000,” adding that “any pullback near the $3,000 level could see Ethereum develop a right shoulder.” “
Similarly, As Ethereum fell to the lowest level of the main $3,200 area, Miky Bull marked the same pattern, indicating that the $7,000 target is “approaching.” According to the chart, the price of ETH could see an increase of 87.53% near the price range of $7,400-$7,500, based on the bullish position.
No more 'big finds' for ETH?
Also crypto analyst Ali Martinez divided his view on the bullish pattern, predicting a decline to $2,900 will be “very positive” for ETH. The analyst argued that it would create “a great buying opportunity to target $7,000 next!”
However, it is worth noting that the bullish pattern would be invalid if Ethereum to fall below $2,800, where the left shoulder was formed.
Meanwhile, another market watcher divided the similarities between the performance of ETH at the beginning of 2024 and 2025, highlighting the King of Altcoins falling below its annual opening in January 2024 before climbing up the following month.
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He said, “I think it's extremely important not to combine a few days of red-hot price action with a long-term bias. I strongly believe that this is an annual open shake after some over-eager participants got too big, too soon. I am very optimistic on H1 2025.”
Wolf Crypto Analyst considering there will likely be “little downside left,” suggesting that ETH could retrace 4% to 7% at most before targeting all-time highs (ATH ).
As of this writing, ETH is trading at $3,255, down 2.15% in the intraday period.
Featured image from Unsplash.com, Chart from TradingView.com
