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After Monday’s decline, Ethereum (ETH) price fell below key support levels and reached its lowest price since November. However, many market watchers remain optimistic, anticipating a massive rise for the cryptocurrency this quarter.
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Ethereum falls to two-month lows
Ethereum started the week with a big rally revisionfalling from the weekend range to a two-month low. Over the weekend, Ethereum price ranged between $3,200 and $3,340 after recovering from last week’s lows.
Amid this performance, cryptocurrency analyst Ali Martinez said He pointed out The most significant resistance for ETH turned out to be between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the main support for the cryptocurrency was between the $3,066 and $3,160 price range, where 4.12 million addresses bought 4.9 million Ethereum.
Ethereum tested this support area during the December corrections, and bounced from the area after pullbacks. However, the altcoin king fell below this key support for the first time since November 9, reaching $2,920 on Monday.
After bouncing 12% from weekend highs, ETH tested the post-election breakout level, confirming the $2,900 price range as support. Ethereum quickly rebounded from this level, rising 9% to the $3,100-$3,200 range.
Cryptocurrency investor Mickey Paul It is considered ETH’s recent performance is “the perfect setup for a massive reversal.” The trader noted that this could be the reversal that leads to a breakout of the inverse head and shoulders pattern for Ethereum.
The second largest cryptocurrency by market cap has been forming an inverse head and shoulders pattern for several months, as… male by many analysts, with its left shoulder forming around the $2,800 price range.
“Any pullback near the $3,000 level could lead to Ethereum developing a right shoulder,” Rekt Capital suggested. Meanwhile, Mickey Paul mentioned that a bullish setup targeted the $7,000 mark.
ETH looks like the course of 2021
Crypto Bullet analyst noted that ETH’s chart is similar to his own Behavior 2021. The chart shows that Ethereum experienced a double top pattern during its rally over three years ago. After that, the cryptocurrency fell below the major support area of $3,100, confirming this pattern.
However, it regained this level after consolidating for two weeks, leading to a breakout to ETH’s (ATH) all-time high. According to the analyst, Ethereum repeated this pattern after yesterday’s decline, suggesting that the cryptocurrency’s “worst-case scenario” will reach ATH levels again.
Dan crypto traders Highlight ETH’s historical performance during the beginning of the year, noting that “the percentages that ETH is offering during the first few weeks of the year are pretty crazy.”
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Coinglass data He appears Ethereum recorded mostly negative weekly returns in the first weeks of 2024 but began a 6-week positive streak heading into February. This may indicate that ETH’s negative performance may reverse in the coming weeks. However, Dan advised investors to look at quarterly returns to get a better overview of seasonality.
As of this writing, ETH is trading at $3,230, an increase of 3% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
