After Monday's drop, Ethereum (ETH) fell below key support levels and hit its lowest price since November. Despite this, several market observers remain optimistic, predicting a large rally for the cryptocurrency this quarter.
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The exchange rate of Ethereum is going down against Ethereum
Ethereum started last week with substantial correctionfalling from the weekend range to its lowest price in two months. Over the weekend, Ethereum rallied between $3,200 and $3,340 after recovering from last week's lows.
Among this performance, is the crypto analyst Ali Martinez sharp found that ETH's most critical resistance was between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the main support of the cryptocurrency was between the price range of $3,066 and $3,160, where 4.12 million addresses had bought 4.9 million ETH.
Ethereum tested this support area during the December corrections, bouncing off the area after the pullbacks. However, the king of Altcoins fell below this key support for the first time since November 9, hitting $2,920 on Monday.
After the 12% pullback from weekend highs, ETH tested the breakout level after the election, confirming the $2,900 price range as support. Ethereum bounced quickly from this level, going up 9% to the $3,100-$3,200 range.
Crypto investor Miky Bull considering ETH's recent performance is the “perfect scenario for a major turnaround.” The trader noted that this could be the reversal that leads to a breakout from Ethereum's inverse head and shoulders pattern.
The second largest cryptocurrency by market capitalization has been forming a multi-month head and shoulders pattern, as was noted by several analysts, with its left shoulder formed around the $2,800 price range.
Rekt Capital had suggested that “any pullback near the $3,000 level could see Ethereum develop a right shoulder.” ” Meanwhile, Miky Bull said that the bullish position was aimed at the $7,000 mark.
ETH looks like the way to 2021
The Crypto Bullet analyst pointed out that the ETH record was similar Conduct 2021. The chart shows that Ethereum is seeing a Double Top pattern during its rally three years ago. Then, the cryptocurrency fell below the main support area of $3,100, confirming the pattern.
However, it regained this level after consolidating for two weeks, which led to ETH (ATH) breaking out to an all-time high. According to the analysis, Ethereum is repeating this pattern after yesterday's fall, suggesting that the cryptocurrency's “worst-case scenario” would hit ATH levels again.
Daan Crypto Traders marked ETH's historical performance at the beginning of the year, saying that “the percentages that ETH makes in the first few weeks of the year are very misleading.”
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CoinGlass data presentations that Ethereum recorded mostly negative weekly results in the first weeks of 2024 but started a 6-week positive streak as February approached. This could suggest that ETH's negative performance could reverse in the coming weeks. Nevertheless, Daan advised investors to look at the quarterly results for a better view of seasonality.
As of this writing, ETH is trading at $3,230, up 3% in the intraday period.
Featured image from Unsplash.com, Chart from TradingView.com
