In the past week, Ethereum (ETH) has fallen by 9.3%, falling from $3,630 on January 3 to $3,235 at the time of writing. While ETH is trying to defend the psychologically important support level at $3,000, some crypto analysts remain confident that the long-term price path of the digital asset is optimistic.
Can Ethereum recover? Analysts emphasize it
While the current crypto bull market saw Bitcoin (BTC) create several all-time historical highs (ATH), Ethereum's price action remained relatively quiet. Notably, ETH's ATH of $4,878 recorded in November 2021 remains intact.
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However, ETH's subpar price action during the current market cycle has not dampened crypto analysts' hopes for a reversal. For example, several analysts are closely watching the upside head-and-shoulders pattern that is forming on the 3-day Ethereum chart.
While a typical head-and-shoulders pattern is usually bearish, an inverted head-and-shoulders pattern is considered bullish, indicating a possible reversal in the asset's price movement. Analyst MikyBull recently highlighted this formation in a post on X.
The crypto analyst Wolf, confirmed the bullish forecast of MikyBull. In their analysis, Wolf marked that a successful completion of an upside head-and-shoulders pattern could move ETH as high as $7,200.
Experienced cryptocurrency analyst Ali Martinez said a decline to $2,900 would be “very positive for Ethereum,” creating a good buying opportunity before ETH climbs to new ATHs. Martinez also noted that if ETH continues to follow the ascending parallel channel, a drop to $2,800 could provide a solid base for the next move up.
At the same time, cryptocurrency and forex trader Merlijn The Trader highlighted the moving average difference (MACD) indicator on the 4-hour Ethereum chart. This indicates that there could be a move from bearish to bullish. According to Merlijn, this momentum shift could push ETH to the $3,700 price level.
Will ETH hit a new ATH in 2025?
At the time of writing, ETH is trading around 33% below its ATH price. However, the getting up institutional interest in the digital asset – especially after the US Securities and Exchange Commission (SEC) approved the ETH spot exchange-traded fund (ETF) – could give ETH the necessary momentum. eye ATH new.
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A recent report by Steno Research predict that ETH is going to outperform BTC in 2025, with price projections as high as $8,000. But, No all are sure about 2025 bullish for ETH.
To finish, Ethereum must first go over the critical resistance level at $4,000 before he can set his sights on achieving new ATHs. At press time, ETH is trading at $3,235, up 0.1% in the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
